Within this process a dedicated Task Force aims to promote and support Sustainable Public. Procurement ..... Office and
Green Public Procurement – National Action Plan August 2011 Office of the Prime Minister
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Table of Contents Foreword .............................................................................................................................................iii Executive Summary ..........................................................................................................................iv Acronyms............................................................................................................................................ v PART ONE: GREEN PUBLIC PROCUREMENT – AN OVERVIEW
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Introduction............................................................................................................................................. 2 1.0 Green Public Procurement in the EU .............................................................................................. 2 1.1. Overview of current EU policy on GPP.......................................................................................... 2 1.2. Green Public Procurement development across the EU.................................................................. 5 1.3. Emerging commitments .................................................................................................................. 9 1.4. Life Cycle Costing (LCC) ............................................................................................................. 11 1.5. The Low Carbon Challenge .................................................................................................... 13 2.0 Overview of Green Public Procurement in Malta ......................................................................... 14 2.1. Public procurement legislation and environmental considerations............................................... 14 2.2. National GPP policy developments............................................................................................... 15 2.3. GPP uptake in Malta ..................................................................................................................... 18 PART TWO: THE STRATEGY Vision
19
............................................................................................................................................. 20
Objectives .......................................................................................................................................... 20 Strategy ............................................................................................................................................. 21 Purchasing activity targets............................................................................................................ 24 Monitoring......................................................................................................................................... 26 APPENDICES
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Appendix 1 EU GPP Priority Product/Service Scope Definitions............................................................................. 27 Appendix 2 Evaluation of level of Green Public Procurement in Malta Government Contracts ... 34 Appendix 3 Qualitative Research on Green Public Procurement............................................................. 39 i
Appendix 4 Carbon footprint and environmental compliance of EU Funded projects...................... 41 Appendix 5 Public Procurement Expenditure & Supplier analysis ......................................................... 43 Appendix 6 Prioritising Product/Service Groups and setting GPP Targets........................................... 71
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Foreword Every decision we take bears consequences on the environment. Government purchasing decisions are not an exception from this rule. Like any other economic activity, public procurement, which represents a significant proportion of Malta’s GDP, has its environmental footprint. The negative aspects of this footprint, such as those associated with materials and resources use and the resulting waste should be reduced, whilst the positive aspects must be promoted. This aim can be achieved with the help of Green Public Procurement (GPP), which is an instrument designed to promote environmentally-positive procurement practices. GPP is a win-win tool. On the one hand, it enables the public sector to obtain the best value for money and procure low-carbon, environmentally-friendly goods, works and services. It therefore represents an efficient use of public finances and promotes environmental improvement. On the other hand, GPP represents a business opportunity for the suppliers of goods and services, rapidly pushing the boundaries of the growing market for environmentally-positive products and services. Whilst in some cases the application of GPP criteria may lead to an increase in the contract price, in most cases this is offset by a proportionate value of public good that is generated as a result of the reduced environmental impact of the procured goods, works or services. This National Action Plan (NAP) aims to firmly establish the GPP in Malta. It is guided by the vision to promote good purchasing practices, reducing their environmental impacts, and maximizing on economic opportunities by government. In the EU, the use of public procurement as a policy instrument has been increasingly recognised and Green Public Procurement (GPP) is one such example. In 2009, EU member states agreed to a political indicative target of ensuring that at least 50% of all public procurement in the EU will be “green” by the year 2010, where “green” means “compliant with EU common core GPP criteria”. Some member states have achieved and exceeded this whilst others, including Malta, are still in the process of establishing the right conditions for GPP to take place. Member states have also agreed to work jointly with the Commission to further develop the criteria for green products and services, promote eco-innovative and green public procurement, and to stimulate the future market for green products, services and technologies. This National Action Plan (NAP), compiled by the Office of the Prime Minister, together with the Ministry of Finance, the Economy and Investment (MFEI) and other institutional stakeholders forming part of the National GPP Task Force aims to kick-start the process in Malta within a co-ordinated strategic framework, which further builds upon the foundations laid out in 2007 National Action Plan. On the basis of a comprehensive understanding of the current situation both locally and across the EU, this document provides concrete recommendations that extend over a three year period. Priorities, operational and purchasing activity targets that give due consideration to the local scenario are set. The targets set out in the plan are incremental, in order to avoid potential market distortions and to allow sufficient lead time for the market operators to adapt to the new government purchasing policy. This document has been divided into three parts. Part one examines the concept of the EU GPP policy and its current state of play across the EU member states. Part two presents GPP-related developments at the local level. Part three presents the strategy which is at the core of this NAP.
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Executive Summary The EU Green Public Procurement policy (GPP) currently proposes a minimum sustainability standard for publicly procured goods and services and is aiming for each Member State to eventually call for tenders which only accept a certain level of environmental specifications. Public procurement can act as a powerful tool in our efforts to achieve environmental and climate objectives as it provides impetus for the market for sustainable goods and services. Indeed, while its implementation has been recognised as an environmental policy tool, public procurement of environmentally-friendly goods, works and services also offers business opportunities for those willing to exploit them. Within the local context to date, despite the various ongoing green initiatives, GPP has not yet been widely implemented. An assessment of the present situation indicates that the key barriers to the introduction of the GPP include lack of policy and strategic vision, fragmentation of institutional responsibilities, poor awareness of the benefits of the GPP, and lack of technical capacity at the level of public procurers. This National Action Plan addresses such deficiencies. Moreover, it is guided by the vision to promote sustainable public purchasing practices whilst ensuring that this does not lead to market distortions. It is with this in mind, that various studies and enquiries were undertaken in order to derive with a comprehensive understanding of the local scenario, thus making it possible to set challenging but not in the least realistic targets. This National Action Plan sets out GPP targets for eighteen product and service groups for which common GPP criteria have been agreed at EU level. This National Action Plan furthers Government’s overarching vision for sustainable development and sets out the strategic framework for the GPP regime. Its main thrust builds on five strategic objectives, namely the need to: • • • • •
Establish and maintain a strategic framework and structure within which green public procurement can take place in Malta Integrate the environmental dimension within the national public procurement process Establish clear and measurable targets and objectives for green procurement in a range of sectors and ensure their achievement Ensure that the implementation of the GPP is continuously monitored and any corrective actions are taken as may be appropriate Engage procurers, suppliers and markets in the GPP process, provide guidance, and facilitate capacity building in this area
In essence, this National Action Plan maps out the way for a strategic and co-ordinated approach to Green Public Procurement. Whilst on the one hand it sets out challenging targets, on the other it treads with caution in order to avoid market distortions and puts into motion the right culture change.
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Acronyms BICC
Building Industry Consultative Council
CF
Carbon Footprint
DOC
Department of Contracts
EU
European Union
FOBC
Federation of Building and Civil Engineering Contractors
FTS
Foundation for Tomorrow Schools
GPP
Green Public Procurement
LCC
Life Cycle Cost
LN
Legal Notice
MCST
Malta Council for Science and Technology
MCAST
Malta College of Arts, Science and Technology
MEPA
Malta Environmental and Planning Authority
MFEI
Ministry of Finance, the Economy and Investment
MRRA
Ministry for Resources, Rural affairs and the Environment
MQF
Malta Qualification Council
NAP
National Action Plan
OPM
Office of the Prime Minister
UOM
University of Malta
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PART ONE: GREEN PUBLIC PROCUREMENT – AN OVERVIEW This first part deals with the concept of Green Public Procurement providing an overview of applicable legal and economic considerations. The implementation of Green Public Procurement as a low cost policy alternative to mitigating climate change is discussed and the relevance of lifecycle costing in public procurement decisions is put into perspective. The current state of affairs across the EU Member States is explored whilst an understanding of the institutions that see to the implementation of Green Public Procurement within the respective Member States is also provided. The current status and the legal aspects are also provided through an explanation of the previous policy initiatives and studies leading to this national strategy.
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Introduction Public authorities are major consumers in Europe: they spend approximately 2 trillion euros annually, equivalent to some 17% of the EU’s gross domestic product. By using their purchasing power to choose goods and services with lower impacts on the environment, they can make an important contribution to sustainable consumption and production. The concept of Green Public Procurement (GPP) is not new, its potential as a policy instrument has been increasingly recognised at international and EU levels. The international forum of the Organisation for Economic Cooperation and Development (OECD) has since the year 1996 been engaged in research activities related to GPP. This research has assisted in the identification of benefits associated with GPP policies and lead its member states to agree in 2002 on a Council recommendation 'to improve the environmental performance of public procurement.’ The report on the implementation of the recommendation published in 2007 highlighted an increased uptake of GPP by OECD member states. The results identified two main barriers in implementation: financial & budgetary constraints and legal uncertainty, on the other hand key success factors were found to be inter-departmental coordination, the sharing of best practises and training and education. The United Nations has advocated for increased GPP ever since the Rio Declaration when its action plan, known as ‘Agenda 21’ called on governments to exercise ‘leadership through government purchasing.’ At the World Summit on Sustainable development held 10 year later in Johannesburg, GPP was directly referred to in the plan and in response to it the Marrakech Process was initiated to develop a 10 year framework programme to achieve global sustainable consumption and production. Within this process a dedicated Task Force aims to promote and support Sustainable Public Procurement programmes across the globe.
1.0 Green Public Procurement in the EU 1.1. Overview of current EU policy on GPP Within the European Union (EU) the potential of GPP was first highlighted in EU Commission Communication to the European Council and the European Parliament, of the 18th June 20031 wherein GPP was recognised as one of the most important policy instruments in Integrated Product Policy. In this Communication the Commission encouraged all Member States to draw up three-year National Action Plans (NAPs) by the end of 2006 and to describe how they intended to increase their level of environmental procurement. The NAPs were to provide an assessment of the existing situation and prescribe GPP targets and measures to achieve them. Such strategic efforts, though not legally binding were intended to raise awareness and provide momentum for GPP. GPP is now seen as an integral part of the new EU Action Plan on Sustainable Consumption and Production and Sustainable Industry Policy2. In another recent EU Communication (COM (2008) 400 final)3, Green Public Procurement is defined as:
1 European Commission, Communication to the European Council and the European Parliament, of 18 June 2003: Integrated Product Policy, Building on Environment Life-Cycle Thinking, COM (2003) 302 final. 2 European Commission, Communication to the European Council and the European Parliament, the European Economic and Social Committee and the Committee of Regions on Sustainable Consumption and Production and Sustainable Industry Policy Action Plan, (2008) 397/3. 3 European Commission, Communication to the European Council and the European Parliament, the European Economic and Social Committee and the Committee of Regions of 16 July 2008, Public Procurement for a Better Environment, COM (2008) 400 final.
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‘….a process whereby public authorities seek to procure goods, services and works with a reduced environmental impact throughout their life cycle when compared to goods, services and works with the same primary function that would otherwise be procured’ Amongst other, the Commission proposed that: “…… by the year 2010, 50 % of all tendering procedures should be green, where "green" means "compliant with endorsed common “core” GPP criteria”... The percentage would be expressed in both number and value of green contracts as compared to the overall number and value of contracts concluded in the sectors for which common “core” GPP criteria have been identified.” This Communication subsequently served as a basis for Council Conclusions adopted in October 2009, whereby the EU member states including Malta, agreed to an indicative green public procurement target of 50% by the year 2010. The 2009 Council Conclusions also called upon Member States to collaborate with the Commission in the development of common criteria, or a set of environmental specifications for key product and service groups. This work culminated in the development of a first set of EU common criteria for 10 product and service groups, which were later supplemented with further criteria for another 8 product and service groups in July 2010 (see table 1). The criteria, available on the EU’s GPP website under the ‘Training Toolkit for Green public procurement’4 are mostly based on EU eco-label criteria as well as on information collected from various stakeholders including Commission services, industry, civil society and Member States. These criteria may be included in tender documents as part of technical specifications or terms of reference for the provision of the required supplies, works or services. The Commission has invited Member States to endorse the first set of common GPP criteria and to implement them in their National Action Plans. Meanwhile, the EU Commission together with member states continued to develop a third set of criteria for another 5 product and service groups. This work is expected to be finalised in 2011. Table 1 : Product and service groups for which criteria are being developed 1st Set
2nd Set
3rd Set5
Construction
Windows, Glazed Doors and Skylights
Heating systems
Food and Catering Services
Thermal Insulation
Water using products
Transport
Hard floor-coverings
Imaging Equipment
Electricity
Wall Panels
Buildings
Office IT Equipment
Combine Heat and Power (CHP)
Tissue paper
Textiles
Road construction and traffic signs
Copying and Graphic Paper
Street lighting and traffic signals
Furniture
Mobile phones
Cleaning Products and Services Gardening Products and Services
For each product/service group two sets of criteria are presented:
4
EUROPAEnvironmentGreen Public Procurement – http://ec.europa.eu/environment/gpp/toolkit_en.htm (accessed 11 March 2011)
Toolkit
5
EUROPAEnvironmentGreen Public Procurement – Work plan http://ec.europa.eu/environment/gpp/gpp_criteria_wp.htm (accessed 11 march 2011)
on
on
Green
Green
Public
Public
Procurement
Procurement
3
Core GPP criteria address the most significant environmental impacts, and are designed to be used with minimum additional verification effort or cost increases, whilst the Comprehensive GPP criteria are intended for use by authorities who seek to purchase the best environmental products available on the market, and may require additional administrative effort or imply a certain cost increase as compared to other products fulfilling the same function.
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1.2. Green Public Procurement development across the EU Public procurement plays a crucial role in the European economy. In the EU, spending on public procurement is estimated to be about 16% of the gross domestic product (GDP) of the Member States, or €1,500 billion in 2002 6. Although this figure varies significantly between Member States, ranging between 11% and 20% of GDP, it clearly denotes the significant purchasing power of public institutions to impact markets, influence production and consumption trends. Over the years green public procurement has emerged as a potentially powerful tool for shaping ‘green’ economies. Apart from the obvious benefit to the environment, it has also been shown to benefit the overall economy by boosting competitiveness, innovation and creating business opportunities. Indeed, GPP has evolved from being solely an instrument of environment policy to a tool that can help economic stability, supporting SME’s and creating jobs. 7
The recent EU Commission study has also highlighted the potential of GPP to assist in the transition to a low-carbon economy by stimulating the development of markets for lowcarbon products and services and reducing GHG emissions embedded within the product lifecycle. Although it was noted that GPP tends to increase direct purchasing costs, it was also highlighted that this increase was nearly always compensated for by reductions in operational costs over the product life. 8
One of the most comprehensive reports on GPP published in 2006 by DG Environment provided an overview of GPP across 25 EU Member States. Conclusions were drawn on the basis of 860 online questionnaires and an analysis of the extent to which environmental criteria were reflected in 1000 public procurement tender documents. The report revealed that seven countries (the so-called “Green 7”) namely, Austria, Denmark, Finland, Germany, Netherlands, Sweden and UK consistently featured more tenders with green criteria than the other 18 Member States. More specifically, only the “Green 7” were practising GPP to a significant extent, that is, with more than 50% of all analysed tenders included environmental criteria. All other EU member states were found to be lagging behind. According to the study, GPP in the “Green 7” appeared to possess the following characteristics: • • • •
The presence of strong political drivers, national guidelines and programmes for GPP Provision of GPP information to the public Use of innovative tools like life-cycle costing and green contract variants in procurement procedures Frequent implementation of environmental management systems (EMS) by the purchasing authorities
The report also identified the main barriers to GPP, namely; • • •
Higher costs attributed to green products Weak managerial and political support, and Lack of environmental information, knowledge and training.
6 Report on the functioning of public procurement markets in the EU: benefits from the application of EU directives and challenges for the future, 2004 (http://ec.europa.eu/internal_market/publicprocurement/docs/public-proc-market-final-report_en.pdf Accessed 27 December, 2009) 7 PwC Sustainability. 2009. Collection of statistical information on Green Public Procurement in the EU: Report on data collection results, Report compiled by PricewaterhouseCoopers, Significant and Ecofys, January 2009. [http://ec.europa.eu/environment/gpp/study_en.htm, accessesed, 27 December, 2009) 8 Bouwer M, Jonk M, Berman T, Bersani R, Lusser H, Nappa V, Nissinen A, Parikka K, Szuppinger P and Viganò C, 2006. Green Public Procurement in Europe 2006 – Conclusions and recommendations. Virage Milieu & Management bv, Korte Spaarne 31, 2011 AJ Haarlem, the Netherlands. (http://europa.eu.int/comm/environment/gpp. Accessed 27 December,2009)
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Significant potential exists for further application of GPP across the EU. Before 2006 only six member states had implemented GPP national action plans and seven other countries had drafts prepared. By 2010 sixteen Member States adopted National Action Plans (table 2 refers) and four Member States had drafts prepared. Table 3 contains a summary of institutional arrangements in place for GPP across the EU. Evidently, environmental ministries and authorities play a major role, followed by authorities responsible for the economy and finances. Table 2 : GPP state of affairs across EU Member States EU MEMBER STATE
TARGE TS
NAP
Austria
√
Targets to be reached by 2010 - IT: 95%; electricity: 80%; paper - 30%; cleaning products - 95%; vehicles: 20% General obligation for the federal level to procure sustainable products using at least EU-Toolkit core criteria for 10 product groups and 6 additional ones. With mandatory quantitative targets for the federal level and recommendation for regional and municipalities to adopt similar decrees.
Belgium
√
Target of 50% of GPP at Federal level by 2011; Target of 100% of GPP at level of Flemish region by 2020
Bulgaria
Energy efficiency criteria for 5 priority product groups: office IT equipment, air conditioning and ventilation, white goods, office lightening and public street lightening, motor vehicles.
Cyprus
Targets set for 12 priority product and service groups - office equipment and paper, electricity and products, save energy methods and products, cleaning products and services, saving water products and sanitary ware, construction (building and road) and renovation, food products and services, furniture, textiles, transport , gardening product and services, mobile phones. Mandatory core criteria. (50%)
√
Czech Republic
Rules are mandatory for Central Government and the same rules are recommended to local authorities. Mandatory criteria for furniture and IT and for the other product groups in preparation. By the year 2014 - 25% of all vehicles of state and public services „environmentally friendly”
Denmark
At Central Government level 20 product groups have mandatory GPP. At regional and local level through voluntary partnerships for 13 product groups are mandatory
Estonia Finland
√
State organisations - 70% GPP by 2010 and 100% by 2015; Municipalities - 25% of GPP by 2010 and 50% by 2015 Mandatory for state organizations but voluntary for municipalities
France
√
Objectives set for 15 product groups - Computers, printers, paper, food, clothes, furniture, office equipment, wood products cleaning services, waste management, green areas, cars, eco- driving transport, transport, water and energy, lighting, energy consumption and CO2 emission monitoring, training, social procurement, social responsibility
Germany
√
Mandatory targets for all Contracting Authorities at federal level to use life cycle costing in their procurement to ensure energy-efficient and environment-friendly public procurement. Also a legal decree that all wood products procured must be sources from sustainable forestry sources.
Greece Hungary Ireland
No product target groups have been identified
Italy
Eleven priority products identified - furniture, building, waste management, urban and country services, energy services, electronics, textile, stationary, catering, building management services, transport. 30% of goods purchased by public administration to comply with ecological criteria and at least 30 to 40 % shall have reduced electricity consumption. Public bodies are obliged to purchase at least 30% of goods from recycled material.
√
Latvia
6
√
Environmental protection criteria to be applied to 20% of total public procurement in 2010. First priority products - paper and other office supplies made from paper and cardboard; Other office supplies; Publishing and printing other related services; Passenger road vehicles; Passenger transportation services; Office equipment and maintenance services; Inks and toners for printers, faxes, photocopiers; IT equipment, cleaning supplies and services; light bulbs; Event management services Second priority products - furniture; construction; textile goods; goods and services for gardening; food and catering; domestic equipment (dishwashers, washing machines, air conditioners, refrigerators), circulation pumps. GPP requirements are mandatory for central authorities and voluntary for municipalities
√
Federal Government and Government agencies - 100% GPP by 2010; Provinces - 50% GPP by 2010 and 100% by 2015; Municipalities - 75% GPP by 2010 and 100% by 2015
Norway
√
Norwegian government has a legal obligation to take environmental aspects in consideration in all public procurement. The government published recommended environmental criteria for: hotel services, office furniture, cleaning services, laundry services, textiles, building construction, building planning and design, ICT equipment, copying paper, toner cassettes, envelopes, printed matter and services, institutional nappies & Vehicles and transportation
Poland
√
18 product groups and 7 service groups.
Portugal
√
50% of Government Contracts to include green criteria by 2010. Eight priority groups identified Construction, transport, energy, office equipments, office consumables including paper, cleaning products, public building maintenance services
Romania
√
Slovakia
√
Slovenia
√
Spain
√
Targets 25% to 100% according to the type of product. 8 priority product groups have been identified, Construction and maintenance, energy, transport, office equipment, paper and publications, furniture, cleaning products and services, events.
Sweden
√
Targets 50 criteria by 2009 and 60 by 2010
United Kingdom
√
Series of sustainable operational targets - pledge to go carbon neutral by 2012 and to reduce carbon emissions by 30% by 2020. Mandatory minimum criteria for, construction, food, clothing and other textiles, paper, cleaning products, energy, consumables-office machinery and computers, furniture, transport and gardening services
Lithuania
Luxembourg Netherlands
Targets set lower than 20% (except in case of lighting equipment – 50%). These are voluntary for the first year and voluntary/mandatory for subsequent years. 7 Priority product groups are identified in the draft NAP: cleaning products and services, construction, lighting equipment, ecological food products and drinks, furniture, IT equipment, Copying paper 50% GPP by 2010 by Central Government Authorities 6 product groups (Copying and graphic paper, Energy, Cleaning products and services, Food and catering services, Construction, IT equipment). 50% GPP by 2012 by Central Government Authorities for 8 product groups - construction - 30 %; cleaning products and services - 60%; Office IT equipment - 95%; Transport - 40%; Energy - 100%; Furniture - 50%; paper and printing services - 70%; food and catering services - 40%
Information Source: National GPP policies and guidelines, (updated 22 June 2010) http://ec.europa.eu/environment/gpp/pdf/national_gpp_strategies_en.pdf
Table 3: Institutions responsible for implementing GPP AUTHORITIES RESPONSIBLE FOR IMPLEMENTING GPP EU MEMBER STATE Austria
Environment √
Belgium
√
Bulgaria
√
Cyprus
√
Czech Republic
√
Sustainable Development
Finance √
Economy
Public Procurement
Others Federal Chancellery
√ √ (1)
√ √
Coordinating Authority for GPP Implementation; Treasury Regional Authorities
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Denmark
√
Estonia
√
√
√
Finland
√
√
√
France
√ (2)
Germany
√
√
√
√
Energy
√
Environment Agency
Greece
Working group
Hungary
√
Ireland
√
Italy
√
Latvia
√
√
√
Lithuania
√
√
√
√ √
√ Food and Rural Affairs
√
Luxembourg Netherlands
√
Norway
√
Poland
√
Portugal
√
Romania
√
Slovakia
√
Slovenia
√
√
√ √
Agency for Environmental Protection; Central Public Administration;
√ √
√
Spain
Sweden
√
United Kingdom
√
The Social Ministry; Foreign Affairs Ministry State Agency Agency for Public Management and Government Ministry for Infrastructure; Polish centre for testing and certification
√
Slovak Environmental Agency Government office for Development and European Affairs State Government and Interministerial Commission Swedish Environmental Management Council; Swedish Environmental Protection Agency Department for Environment, Food and Rural Affairs
(1) - Ministry of Economy and Energy (2) - Ministry of Ecology Information Source: National GPP policies and guidelines, (updated 22 June 2010) http://ec.europa.eu/environment/gpp/pdf/national_gpp_strategies_en.pdf < accessed 09 March 2011>
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1.3. Emerging commitments Apart from guiding Green Public Procurement initiatives, the European Commission develops sector-specific initiatives which mandate Member States to include environmental considerations in public procurement. These initiatives, in the form of the directives and communications mentioned hereunder, do not exactly correspond to the criteria as set for GPP, but seek to complement and fast-track GPP in certain product/service groups.
Energy performance of buildings9 Directive 2002/91/EC on energy performance of buildings required, among other things, that Member States develop a general framework for the calculation of integrated energy performance of buildings and the application of minimum energy performance standards on new buildings and those subject to major renovation. The transposition of this directive into Maltese law was carried out through Legal Notice 261 of 2008 (L.N. 261 of 2008), through which the ‘Technical Guidance Document F’ was made official. The guidance document sets the minimum technical requirements in the design and construction of new buildings and major renovations in Malta. The 2002 Directive was repealed by the new Directive on the energy performance of buildings (Directive 2010/31/EC). The new directive requires the development of minimum energy requirements based on ‘cost-optimal levels’. This means setting minimum standards while taking into consideration the energy performance level throughout the estimate economic lifecycle of a building. Furthermore, this directive calls on Member States to develop National Action Plans to reach the following targets on the energy performance of buildings: • •
by 31 December 2020, all new buildings are nearly zero- energy buildings After 31 December 2018, new buildings occupied and owned by public authorities are nearly zero-energy buildings.
Promotion of clean and energy-efficient road transport vehicles10 The Directive on the promotion of clean and energy-efficient road transport vehicles (Directive 2009/33/EC) obliges contracting authorities to take the lifetime energy and environmental impact of road transport vehicles into consideration in their procurement. Member states are obliged to include in the following criteria in public tender documents: • • • •
Energy consumption CO2 emissions NOx emissions NMHC & particulate matter
These variables must be estimated for the expected lifetime of the vehicle, in order to assess their impact. Their application in tender documents may be in the form of technical criteria, award criteria or evaluation of the product lifecycle cost. The methodology for carrying out the lifecycle cost is included in the directive.
9
Directive 2010/03/EU of the European Parliament and of the Council of 19 March 2010 on the energy performance of buildings.
10
Directive 2009/33/EU of the European Parliament and of the Council of 23 April 2009 on the promotion of clean and energy-efficient road transport vehicles.
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Energy Efficiency Plan 201111 As one of the targets in the Europe 2020 strategy, the European Union aims to achieve a 20% 12 reduction in primary consumption. Energy efficiency is seen as a cost-effective way to improve energy security and reduce emissions of greenhouse gases and pollutants. The Energy Efficiency Plan aims to address this potential by reviving Member States efforts at reaching this target. The need to address energy efficiency in the public sector is carried out through 4 principle actions: •
High Standard energy efficiency13 products and transport modes. This Commission proposal aims to complement the Directive on the promotion of clean and energy efficient road transport vehicles and GPP initiatives. It proposes to the Council and Parliament that for all public procurement of goods, services and works, only the highest standards of energy efficiency is requested.
•
Renovation of public buildings. The Commission is expected to propose a legal instrument under which public authorities will have to renovate 3% of their buildings (by floor area) each year, to the level of the ‘best’ 10% of the national building stock. Furthermore, whenever buying or renting buildings, public authorities must procure at the highest energy performance class.
•
Energy Performance Contracting. The use of Energy Performance Contracting is being regarded as an effective way of improving the energy efficiency of buildings in the process of renovation. The European Commission will promote the uptake of this form of procurement by addressing legal uncertainty and establish energy consumption baselines to facilitate the comparison of energy performance levels.
•
Local Approach to Energy Efficiency The Commission will continue supporting local initiatives through the covenant of Mayors and the Smart Cities and Smart Communities, which will be launched in 2011.
The need to integrate these emergent European policies and targets into GPP at a national level is critical to ensure policy cohesion and avoid duplication of efforts. These policies reflect the opportunity to streamline environmental considerations in public procurement through the use of hard and soft policy tools.
11
European Commission, Communication to the European Council and the European Parliament, of 8 March 2011: Energy Efficiency Plan 2011, COM (2011) 109 final.
12
7224/1/07 REV 1: Presidency Conclusions of the European Council of 8/9 March 2007. This objective was reconfirmed by the June 2010 European Council (17/6/2010 Nr: EUCO13/10).
13
Technically, 'energy efficiency' means using less energy inputs while maintaining an equivalent level of economic activity or service; 'energy saving' is a broader concept that also includes consumption reduction through behaviour change or decreased economic activity. In practice the two are difficult to disentangle and – as in this Communication – the terms are often used interchangeably.
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1.4. Life Cycle Costing (LCC) The concept of Life Cycle Costing assessment has been the subject of considerable research and application across the world. It takes into consideration the total cost of a product throughout its life cycle, commonly referred to as “cradle to grave" or "womb to tomb" costs. Such costs cover not only the initial investment but also the operating and maintenance costs, taxes, disposal costs as well as any revenue wherein the Net Present Value methodology is incorporated. Life cycle costing analysis is frequently used to determine the monetary value of selected costs. Research and experiences suggest that the most LCC-efficient alternatives are not always the most sustainable in terms of environmental attributes. The inclusion within LCC analysis of non-financial elements within the context of sustainable public procurement to determine the “best environmental value” also appears to be gaining momentum. The use of LCC efficient products by procurers can demonstrate amongst other things how such products contribute towards lowered carbon emissions. Making a decision on the basis of life cycle costing may mean paying more upfront. According to a report that was compiled by the International Institute for Sustainable Development (2009)14 it was noted that early sustainable public procurement experiences during the 1980s across the U.S.A., Germany, Austria, Iceland, The Netherlands and Switzerland faced 10 to 45 per cent price hikes when compared to “best value for money at the time of purchase.” However, it was also noted that although today’s prices have levelled out greatly and procurers in the U.S.A. claim that they no longer pay extra for sustainable alternatives, European procurers appear to be claiming that they are being faced with premiums that can rise up to 18 per cent. This issue is of particular relevance in the case of Malta as the concept of sustainable procurement is still embryonic. The possibility of sourcing sustainable alternatives through expensive imports or paying a very high-cost premium to stimulate infant local industries should not be overlooked. Thus, the purchase of large volumes through public contracts to make economies of scale more feasible appears to be a practical option. According to the PwC report (2009)15 commissioned by the European Commission it was found that the implementation of GPP (period of study 2006-2007) across Austria, Denmark, Finland, Germany, Netherlands, Sweden and UK led to average life cycle cost reductions of 1%. In the rush to promote “quick wins”, the incorporation of LCC (where feasible) as an integral component of the procurement process may be overlooked. In the absence of such methodologies it would be very difficult to justify the higher upfront costs and that optimum use of the tax payers’ money is being made. As a consequence, in the long term GPP policies run the risk of being sidelined or even abandoned on the premise that sustainable goods and services are more expensive. Thus, sustainable procurement has a better chance of survival when budgets take into consideration their Life Cycle Costs. Various LCC tools which aim to assist procurers implement LCC approaches are available. The application of LCC calculations is best suited to products with high energy consumption, according to the PwC report. Table 4 depicts the best-suited products and services for LCC analysis in procurement decisions. LCC calculations can be used to guide decision makers make informed decisions, for example, it can be used to help determine the difference in cost
14
EUROPA- Joint Research Centre - Sustainable Production and Consumption (SUSPROC) http://susproc.jrc.ec.europa.eu/index.html (accessed 11 march 2011)
15
PwC Sustainability. 2009. Collection of statistical information on Green Public Procurement in the EU: Report on data collection results, Report compiled by PricewaterhouseCoopers, Significant and Ecofys, January 2009. [http://ec.europa.eu/environment/gpp/study_en.htm, accessesed, 27 December, 2009)
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of leasing vis-à-vis purchasing. LCC calculations can also be used in tender evaluations. The application of LCC requires sufficient policy guidance and tools that enable procurers to incorporate LCC-efficient benchmarks that can be included as mandatory specifications in tender documents. The fact that the use of LCC is a new and evolving science that requires specific expertise the burden for conducting LCC should not lie with the procurers but shifted higher up where dedicated resources and continuous skill building could be maintained. This approach appears to be most favoured in countries such as Switzerland, Sweden, Finland, Norway, Denmark, the U.S.A. and Canada, where dedicated centres of expertise have been set up and where the necessary support and guidance to procurers could be provided16. As such, this makes it possible to facilitate further the procurement process for purchasers to procure sustainable products. Thus, whilst facilitating their work it also relieves them from having to face an additional technical task. However, in order to ensure that this system functions effectively appropriate checks and balances that ensure government accountability, transparency and good governance need to be in place. Otherwise, one may face the risk where “sustainable” policies are used to suit private interests rather than the nation’s sustainable development needs. Table 4: Products and services that are best suited for life cycle costing in procurement decisions
Frequently purchased items Products Office and server IT equipment Vehicles Indoor lighting Outdoor lighting Paper Office supplies Fuel Furniture Apparel made with modern fibres and polymers Services Software Electricity Transport Couriers and postal services Waste handling Catering: food Catering: beverages Works New buildings Refurbishment of existing buildings Landscaping Roads
High √ √ √ √
Level of applicability for Life Cycle Costing Moderate Not applicable
√ √ √ √ √ √ √ √ √ √ √ √ √ √ √ √
Information source: International Institute for Sustainable Development, Life Cycle Costing a question of value, White Paper (2009), report compiled by Oshani Perera, IISD, Barbara Morton, Sustainable Procurement Ltd., Tina Perfrement, Perfrement Consulting Ltd.
16
International Institute for Sustainable Development, 2009, “op. cit”
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1.5. The Low Carbon Challenge Greenhouse gases are the primary cause of the earth’s global warming and when linked to the impact of human behaviour CO 2 is considered as the most important gas – 60% of the human impact on the earth’s climate being determined by CO 2 emissions 17. Indeed, the challenges faced in the environmental and climate field call for concerted and systematic approaches. The reduction of CO2 emissions is not only concerned with the reduction of such emissions at plant level but also at the level of the consumer where the reduction of greenhouse gas impacts from products and services should also to be taken into consideration. The implementation of Green Public Procurement can be viewed as a low-cost policy alternative to mitigate climate change increases. According to the 2009 report 18, the average reduction of CO 2 emissions as a result of GPP amounted to 25% when compared to non-GPP procurement. The emission impact varied to -9% in Germany and -49% in the Netherlands. Apparently the differences between countries was determined by the level of GPP (the higher the level the higher the CO2 impact) and the country-specific CO2 impact per functional unit of a product group (some product groups have a higher CO2 impact per functional unit). According to the PwC report (2009) the financial and CO2 impacts on transport, construction and comprehensive cleaning services were found to be negative. However, in terms of relative CO 2 emissions, construction and electricity were found to have the relatively highest impacts. The term Carbon Footprint (CF) is commonly employed to denote the climate impact of organisations, their products and services. Other commonly used terms include, Climate Footprint and Greenhouse Gas (GHG) emissions footprint. The usage and interchange of different terminology reflects the fact that to date we do not yet have a universally accepted definition. Within the context of Sustainable Consumption and Production there is a growing demand for CF data for inclusion in life cycle based information 19. However, a universally accepted methodology to measure and quantify the climate impact from products and services has not yet been established.
17
PwC Sustainability. 2009. Collection of statistical information on Green Public Procurement in the EU: Report on data collection results, Report compiled by PricewaterhouseCoopers, Significant and Ecofys, January 2009. [http://ec.europa.eu/environment/gpp/study_en.htm, accessesed, 27 December, 2009)
18
“ibid. ”
19
According to the Swedish Environmental Management Council Report (2009), “Studies on CF do not take into account other environmental impact categories beyond climate change. Use of only CF information in policies for general pollution mitigation measures can therefore give a distorted picture of the overall environmental performance of a product or service.” p.13
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2.0 Overview of Green Public Procurement in Malta 2.1. Public procurement legislation and environmental considerations The regulation on Public Procurement exposes both a legal and an economic approach to the integration of public markets in the EU. The legal approach to the regulation of public procurement in parallel with the economic arguments support the fundamental principles of the Treaty, in particular the principals of free movement of goods and services and the right of establishment, and the principles deriving there from such as the principle of equal treatment, the principle of non-discrimination, the principal of mutual recognition, the principle of proportionality and the principal of transparency. The economic approach seeks to bring about competitiveness within an integral public market across the EU. Directive 2004/18/EC20 and Directive 2004/17/EC21 were transposed into national legislation via Legal Notices 177 of 2005 and 178 of 2005 respectively. The Directives are based on Court of Justice case-law 22. In the case of award criteria it clarifies the possibility for Contracting Authorities to take environmental criteria into consideration, amongst other things. In 2010, LN 177 of 2005 was repealed by LN 296 of 2010. Article 31 (2) of LN 296 enables the contracting authorities to “lay down special conditions relating to the performance of a contract, provided that these are compatible with Community law and are indicated in the contract notice or in the specifications. The conditions governing the performance of a contract may, in particular, concern social and environmental considerations”. Furthermore, Article 46 (2) (b) allows the contracting authorities, without prejudice to the legally binding technical rules in Malta, and insofar as these are compatible with Community law, to formulate technical specifications “in terms of performance or functional requirements”, which “may include environmental characteristics”. However, such parameters must be sufficiently precise to allow tenderers to determine the subject-matter of the contract and to allow contracting authorities to award the contract. Importantly, sub-Article 46 (5) stipulates that “Where contracting authorities lay down environmental characteristics in terms of performance or functional requirements as referred to in sub-regulation (2)(b), they may use the detailed specifications, or if necessary, parts thereof, as defined by European, national or multi-national eco-labels, or by any other ecolabel, provided that: (a) those specifications are appropriate to define the characteristics of the supplies or services that are the object of the contract; (b) the requirements for the label are drawn up on the basis of scientific information; (c) the eco-labels are adopted using a procedure in which all stakeholders, such as government bodies, consumers, manufacturers, distributors and environmental organisations can participate; and (d) they are accessible to all interested parties: Provided that contracting authorities may indicate that the products and services bearing the eco-labels are presumed to comply with the technical specifications laid down in the contract documents; however they must accept any other appropriate means of proof, such as a technical dossier of the manufacturer or a test report from a recognised body”.
20
Directive 2004/18/EC of the European Parliament and of the Council of 31 March 2004 on the coordination of procedures for the award of public works contracts, public supply contracts and public service contracts.
21
Directive 2004/17/EC of the European Parliament and of the Council of 31 March 2004 coordinating the procurement procedures of entities operating in water, energy transport and postal services sectors.
22
See Case 31/87, Beentjes (1988) ECR 4635, See Case C-513/99, Concordia Bus Finland (2002) ECR I-7123
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Article 52 (2) stipulates that “Evidence of the economic operators’ technical abilities may be furnished by one or more of the following means according to the nature, quantity or importance, and use of the works, supplies or services”. This evidence may include “an indication of the environmental management measures that the economic operator will be able to apply when performing the contract: Provided that should contracting authorities require the production of certificates drawn up by independent bodies attesting the compliance of the economic operator with certain environmental management standards, they shall refer to the Community Eco-Management and Audit Scheme (EMAS) or to environmental management standards based on the relevant European or international standards certified by bodies conforming to Community law or the relevant European or international standards concerning certification. They shall recognise equivalent certificates from bodies established in other Member States. They shall also accept other evidence of equivalent environmental management measures from economic operators” (Article 52(2)(f)). The above provisions firmly establish a legislative base within which GPP can take place in Malta.
2.2. National GPP policy developments The principle of Green Public Procurement has formally been included in Malta’s policy framework at a strategic level since 2005. The National Reform Programme 2005 – 2008 made reference to a Green Public Procurement Plan. This policy was the means through which Government sought to internalise environmental externalities in the market. This measure was the responsibility of what was then Ministry for Rural Affairs and the Environment (MRAE), today the Ministry for Resources and Rural Affairs (MRRA). The drafting of the action plan was delegated to MEPA in liaison with a GPP working group between 2006 - 2007. The working group set up brought together different institutional players, thereby bridging the expertise of various institutions in policy formulation. The working group was composed of the Department of Contracts (DOC), the Ministry for Rural Affairs and the Environment (MRAE), and the Ministry for Finance. This drafting effort was conducted in the absence of a common set of environmental criteria and uncertainty over the potential economic impact of this policy. Thus, consultation and studies were envisaged to take place in the first year of implementation. Following general elections in March 2008, the policy responsibility for GPP was transferred to the Tourism and Sustainable Development Unit (TSDU) within the Office of the Prime Minister (OPM). In September 2008, in the Competitiveness Council, Malta agreed to a political indicative target to integrate GPP in 50% of public procurement. The target relates only to a list of 10 product and service groups for which a common set of criteria is established at European level and is measured in terms of total value of procurement and number of contracts. The political indicative target required a renewed action plan which takes into consideration the market and budgetary impact of GPP application in Malta, given the criteria at established by the Commission. The Department of Contracts within the Ministry of Finance and Economic Investment was assigned the responsibility of coordinating the preparation of the NAP necessary studies to assess the economic impact of the proposed GPP measures. Qualitative research on Green Public Procurement, expenditure analysis of procurement activity and supplier analysis were carried out as part of this task. The qualitative research on Green Public Procurement has identified the prevailing public
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sector attitude towards GPP as well as constraints such as lack of guidance for procurement officers and lack of general information on GPP. Key issues that emerged from this study included the need to: 1 2 3 4 5 6
Specify environmental standards Centralise purchases for government wide supplies Provide information on the carbon footprint of products and services Enforce GPP Engage in a publicity and information campaign aimed at both the purchaser and supplier Motivate the supply market by introducing tax credits
The full report is available in Appendix 2 In the expenditure analysis of procurement activity survey, procurement data covering the period 2007 and 2008 for 20 priority product/service groups was analysed. During 2007 and 2008 the level of GPP priority product/service groups as a percentage of total procurement was registered as 44% and 21% respectively. To achieve the 50% GPP target from the first priority product/service groups, this action plan must particularly address office IT equipment, construction, food and catering services, transport, cleaning products and services and furniture. The higher level of procurement for these product/service groups necessitates due consideration in the targets set in this action plan. The possibility to conclude framework agreements with economic operators was identified, especially for office IT equipment and cleaning products and services. Through these agreements Government may develop the potential for collaboration among government departments in the procurement of certain products and services, thereby benefiting from reduced administrative costs and economies of scale. It was also observed that a vast majority of the contracts relating to the procurement of the 20 priority product/service groups were below the EU threshold for GPP. This allows the procurement market to be accessible for smaller local economic operators in particular SMEs, presenting an opportunity when developing capacity for GPP, as this provides them with exposure, experience and confidence to compete in the common EU market. The full report of expenditure analysis is available in Appendix 5. In the Supplier Analysis, a breakdown of the supplier base for Malta's GPP product/service groups was carried out between 2007 and 2008. The four supplier classifications used were importers, manufacturers, service providers and foreigners. Foreign suppliers accounted for only 1% of procurement during any year of the analysis: these were excluded from further analysis. The resulting breakdown was used to weight the market favourableness for each product group. The manufacturing sector was viewed as the most likely sector to experience added burden when adapting to GPP. Thus, successful bids with a higher concentration of manufacturing supplier base were negatively weighted in relation to market favourableness. The resulting analysis informing this action plan is available in Appendix 6 In preparation of the NAP, extensive consultation was carried out with a range of ministries and departments, as well as industry representatives, such as the Building Industry Consultative Council, Malta Chamber of Commerce, Enterprise and Industry and the Federation of Building and Civil Engineering Contractors. The first draft of this NAP was launched for consultation at a conference in July 2010. Following this, the Office of the Prime Minister collected further feedback from stakeholders, which has been incorporated into this NAP. An inter-ministerial National GPP Task Force was set up in April 2011. The Task Force is responsible for: 1.
Finalizing the GPP National Action Plan and ensure its presentation to Cabinet for endorsement
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2. 3. 4. 5. 6.
Acting as a strategic coordinating body overseeing a framework within which green public procurement can take place in Malta Integrating green purchasing practices within the national public procurement process Establishing clear and measurable targets and objectives for green procurement in a range of sectors and ensure their achievement Ensuring that the implementation of the GPP is continuously monitored and any corrective actions are taken as may be appropriate Engaging procurers, suppliers and markets in the GPP process, provide guidance, and facilitate capacity building in this area
The Task Force is composed of the following entities: •
The Office of the Prime Minister has the overall responsibility for coordinating the implementation of GPP in Malta. It Chairs the Task Force and coordinates the necessary follow-up at a strategic level.
•
The Ministry for Resources and Rural Affairs provides input to the finalization of the draft National Action Plan and its subsequent implementation on matters related to energy and resource efficiency, buildings design, procurement related to agriculture and fisheries and issues related to climate change climate change.
•
The Malta Environment and Planning Authority, in its capacity as a national land use planning and environmental regulator, advises the Task Force and provide input on matters related to environmental and land use issues of relevance to GPP process.
•
The Malta Council for Science and Technology advises on matters related to the procurement of innovation, research and pre-commercial procurement.
•
The Department of Contracts is the competent authority for public procurement. It shall be responsible for the integration of GPP into mainstream procurement procedures of the government, screening tender documents to ensure the uptake of GPP at an operational level, and providing regular updates to the TSDU GPP officer on its uptake.
•
The Malta Enterprise works with its SME client base to disseminate information on GPP and assist market operators in participating in GPP opportunities.
•
The National Statistics Office advises on matters related to the monitoring of GPP and the potential incorporation of GPP indicators into the mainstream national statistical processes.
•
The Malta Competition and Consumer Affairs Authority (formerly known as the Malta Standards Authority) advises on all matters related to environmental performance standards of products and services, environmental management systems certification schemes, as well as on the relevant eco-labels and EMAS.
•
The Department for Local Government facilitates the application of GPP at the level of local authorities, i.e. integration of GPP into procurement by local councils.
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2.3. GPP uptake in Malta Several initiatives were undertaken over the past few years in order to promote greener purchasing practices. Since 2007, tenders that formed part of projects supported by EU and national funds under Cohesion Policy programmes were required to include a consideration of environmental impacts as part of the funding requirement. Furthermore, these tenders were also subjected to a mandatory screening process operated by the Ministry for Resources and Rural Affairs, whereby impact on climate change including carbon footprint were systematically considered. Environmental guidance to tenderers was also provided by the Malta Environment and Planning Authority. Furthermore, the new national procurement documentation templates that were made mandatory in June 2010 included optional references to environmental criteria as part of the environment plan which bidders may be required to submit in response to tenders. In line with the government policy drive, whereby Government budget for 2010 referred to “the concept of purchasing which will be sensitive to environmental protection in all the public sector”, several GPP-related initiatives were also undertaken. For example the construction of a new public school at Pembroke has followed principles of energy efficiency and use of environmentally friendly construction materials and techniques. Local Enterprise and Green challenge awards recognised local authorities which excelled in green procurement practices. Despite the success of the above initiatives, studies carried out by the Malta Environment and Planning Authority, the Office of the Prime Minister and the Department of Contracts in preparation of the 2010 draft NAP revealed a very low level of GPP uptake in the 2007 – 2009 period. It was found that whilst many tenders have indeed contained environmental consideration, none of the tenders were actually found to be fully compliant with GPP common criteria. This is largely due to lack of information on EU GPP common criteria at the level of purchasing officers, lack of practical guidance on GPP, lack of specific and measurable GPP targets owned by all government ministries, and lack of appropriate structures to oversee GPP implementation.
The present NAP aims at addressing the above deficiencies.
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PART TWO: THE STRATEGY Part two of this document presents Malta’s National Action Plan. Strategic goals and actions for the gradual integration of Green Public Procurement across the Government Sector for the forthcoming three years are laid out. Clear lines of responsibility clarifying the various actors responsible for promoting and implementing Green Public Procurement development are set. Monitoring of this action plan and its outcomes is organized and systemized.
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Vision This Action Plan builds on Government’s overarching vision for sustainable development as set out in the National Sustainable Development Strategy. The NAP seeks to further sustainable development objectives by encouraging public procurement that fully takes into account environmental and economic objectives.
Objectives This Action Plan has the following key objectives: 1. 2. 3. 4. 5.
Establish and maintain a strategic framework and structure within which green public procurement can take place in Malta Integrate the environmental dimension within the national public procurement process Establish clear and measurable targets and objectives for green procurement in a range of sectors and ensure their achievement Ensure that the implementation of the GPP is continuously monitored and any corrective actions are taken as may be appropriate Engage procurers, suppliers and markets in the GPP process, provide guidance, and facilitate capacity building in this area
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Strategy The above objectives are translated into a strategy, which is based on the following measures: Objective
Measure
Description
Lead responsibility
1. Establish and maintain a strategic framework and structure within which green public procurement can take place in Malta.
1.1 By May 2011, establish the National GPP Task Force
1.1.1 The National GPP Task Force has been set up in April 2011. A Terms of Reference outlining roles and responsibilities of the Task Force members has been adopted. The Office of the Prime Minister (TSDU) will chair the task force and provide an executive function. The Task Force will meet regularly throughout the period of the NAP.
The Tourism and Sustainable Development Unit (TSDU) within the Office of the Prime Minister will spearhead the National GPP Task Force, which consists of the representatives of the Office of the Prime Minister (Tourism and Sustainable Development Unit, Malta Competition and Consumer Affairs Authority, Malta Council for Science and Technology, Department of Local Government, Malta Environment and Planning Authority), Ministry of Finance, the Economy and Investment (Department of Contracts, National Statistics Office), Ministry for Resources and Rural Affairs (Malta Resources Authority).
1.2 By end of June 2011, consult stakeholders and present the NAP for Cabinet endorsement 1.3 Ensure NAP implementation in the period between 2011 – 2013 1.4 Ensure that the GPP NAP is revised and updated in time for the next 3-year period between 2013 – 2016.
1.1.2 The Task Force will review and ensure the NAP is up-to-date following stakeholder consultation, finalize the NAP and present for Cabinet’s approval in July 2011. 1.3.1 By the end of 2011, a full time GPP Officer will be recruited within TSDU. The Officer will liaise with all members of the Task Force and with procurers to ensure implementation of the NAP. 1.4.1 Towards the end of 2012, the Task Force will initiate a revision of the NAP for the next 3-year period.
2. Integrate the environmental dimension within the national public procurement process.
2.1 By September 2011, the Government will review and initiate the incorporation of the principles and targets of this NAP within the mainstream public procurement process.
2.1.1 A GPP Circular for procurers will be disseminated amongst all contracting authorities shortly after the NAP is approved. The Circular will contain links to appropriate GPP guidance and will be accompanied by GPP Checklist which must be completed prior to publication of every tender. Consideration of GPP in all tenders will be mandatory for all product and service groups listed in this NAP in line with the targets adopted for each group. 2.1.2 By June 2011, the draft National Environment
TSDU (OPM) will liaise with the MFEI and the Department of Contracts to issue the Circular for procurers. The Department of Contracts shall subsequently be responsible for the administration of the tender screening system. In parallel, TSDU shall coordinate liaison with industry representatives to develop guidelines on the interpretation of EU common criteria
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Objective
Measure
Description
Lead responsibility
Policy will integrate GPP targets.
for certain product groups in order to take full account of national considerations.
2.1.3 By January 2012, all tenders for product and service groups listed in this NAP and issued as part of projects supported via Cohesion Policy programmes will be required to incorporate GPP common criteria. 2.1.4 By January 2012, TSDU shall meet supplier representatives with the view to developing national guidelines on the interpretation of EU common criteria for certain product groups. 3. Establish clear and measurable targets and objectives for green procurement in a range of sectors and ensure their achievement.
3.1 By end of June 2011, green purchasing activity targets set out in this NAP are approved by Government. 3.2 All tenders (irrespective of nature or threshold) issued after December 2011 are prescreened for compliance with GPP prior to publication. 3.3 By 2014, all targets set out in this NAP are fully implemented.
4. Ensure that the implementation of the GPP is continuously monitored and any corrective actions are taken as may be appropriate.
4.1 A monitoring protocol forming part of this NAP is approved by Government in August 2011. 4.2 GPP performance monitoring is performed on a quarterly basis, starting in January 2012. 4.3 GPP-related indicators are integrated into the national statistical reporting procedures by the end of 2013. 4.4. 100% of EU Commission’s requests for GPP monitoring data are replied to.
3.2.1 A circular to procurers will require them to incorporate green purchasing targets in their procurement and to complete a GPP checklist prior to tender publication. 3.2.2 The Department of Contracts will review completed GPP checklists and associated tender documentation to determine adherence to GPP common criteria. There will be ongoing contact and liaison between the Department of Contracts, GPP Officer and procurers. 4.1.1 The monitoring protocol forming part of this NAP incorporates best EU GPP monitoring practice. 4.2.1 Procurers will be requested, by means of a circular, to maintain statistical records pertaining to GPP in all procurement. GPP data on tenders (both departmental and those above EU thresholds) will be collected by the Department of Contracts on a quarterly basis. 4.2.2 Product or service groups that are found to under-perform vis-à-vis GPP targets set out in this NAP will be reviewed and corrective measures will be proposed to Government. Such measures may include revisions to the targets, which may require
TSDU in collaboration with all members of the Task Force and in liaison with all procurers.
The Department of Contracts will administer the tender vetting processes.
The Department of Contracts shall be responsible for overall GPP monitoring. It will carry out monitoring in close liason with the GPP Officer at OPM and with GPP task force members. The National Statistics Office will integrate GPP indicators within the national statistical processes. TSDU will be responsible for coordinating responses to EU requests related to GPP
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Objective
Measure
Description
Lead responsibility
updates to this NAP. Procurers will be informed of any revisions by means of further circulars. 4.3.1 By mid-2012 a central GPP information system will be set up allowing easy collection, reporting and processing of GPP information. 4.3.2 By the end of 2013, GPP indicators are integrated into the national statistics procedures. 4.4.1 National GPP progress will be regularly reported to the EU Commission. 5. Engage procurers, suppliers and markets in the GPP process, provide guidance, and facilitate capacity building in this area.
5.1 Following Cabinet’s approval, this NAP, accompanying documentation and guidance will be published online and publicized in the national press. 5.2 By the end of 2011, the Maltese business community and procurers will be fully informed of the GPP measures contained in this NAP. Furthermore, business representatives will be consulted on the formulation of the guidelines concerning national interpretation of EU common criteria for certain product and service groups. 5.3 Ongoing assistance will be provided on GPP-related requests through a helpdesk facility, which will be set up by September 2011. 5.4 By the end of 2011, a series of GPP training events for procurers and for suppliers will be organized and delivered. 5.5 The Government will continue to participate in the relevant EU and international GPP fora and to contribute to the development of common EU GPP criteria, procedures, and associated deliverables.
5.1.1 A dedicated national GPP webpage will be set up by the end of 2011 and maintained throughout the lifetime of the NAP. GPP process will be publicized in the national press throughout the lifetime of the NAP. 5.2.1 A series of meetings with the representatives of the Maltese business community and with contracting authorities will be held throughout the period of the NAP. Business representatives will also be consulted on the formulation of the guidelines concerning national interpretation of EU common criteria for certain product and service groups. 5.3.1 A national GPP helpdesk facility is set up by September 2011. 5.4.1 At least one training event for procurers and one for suppliers is held before the end of 2011.
TSDU will establish and maintain a central GPP website. Other GPP Task force members may also maintain GPP webpages displaying materials consistent with those on the central page. TSDU will also coordinate GPP-related publicity and meetings with the procurers and representatives of the business community. The Department of Contracts will develop sample GPP tender templates. TSDU will also operate a helpdesk facility in close liaison with other Task Force member agencies. TSDU will coordinate representation in the relevant EU fora.
5.4.2 A series of sample GPP tender templates will be developed and disseminated by the end of 2011. 5.5.1 The Task Force ensures participation in all relevant EU meetings, and ensures the timely submission of input to any relevant EU requests related to GPP criteria, guidance, etc.
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Purchasing activity targets Objective 3 of this NAP presumes the establishment of clear and measurable targets for green procurement in a range of sectors and ensuring their achievement. These targets are at the core of the GPP process. The selection of product/service groups for greening of public purchasing has been made in consultation with key stakeholders, following an analysis of the potential impact of targets in terms of their contribution to environmental objectives, and in terms of their economic impact, including impact on competitiveness of key sectors and industries. As a general rule, purchasing activity targets must have a positive environmental impact, while at the same time they must not lead to an increase in the administrative burdens for procurers and for companies, make supplier participation in public procurement contracts harder, or lead to undesired distortions in competition. An incremental approach was adopted in order to ensure a gradual adaptation of the market and to facilitate a general build-up of capacity in GPP. Varying targets and actions will be introduced over a three year period until the end of 2013. Four key criteria were taken into account in the process of devising the targets. These are: 1. Potential for environmental benefit (this should be positive) 2. Potential impact on public finance (this should be positive or neutral, taking lifecycle into consideration) 3. Potential number of awarded contracts for a given product or service group (the larger the better) 4. Potential market favourableness (the extent to which the market is deemed prepared for providing greener products or services in a given group) The methodology and the detailed assessment of products and service groups using the above criteria is presented in Appendix 6. In addition, the targets must be ambitious enough to produce a measurable and visible impact; and yet the level of ambition must be realistic.
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The table below lists priority product and service groups (i.e. those that must be compliant with the GPP core standards23) selected on the basis of the above criteria: Table 5 – Targets for product and service groups
Product / service group Copying and graphic paper Gardening products and services Cleaning products and services Textiles Office IT equipment Transport Furniture Food and catering services Electricity Construction Mobile Phones Combined Heat and Power Thermal insulation Wall panels Hard floor coverings Windows, glazed doors and skylights Street lighting and traffic signals Road construction and traffic signs
YEAR 1 100% 100% 80% 100% 100% 10% 10% 10% 10% 10% 10% 10% 80% 80% 10% 10% 10% 10%
TARGETS YEAR YEAR 2 3 100% 100% 100% 100% 90% 100% 100% 100% 100% 100% 20% 30% 20% 30% 20% 30% 20% 30% 20% 30% 20% 30% 20% 30% 90% 100% 90% 100% 20% 30% 20% 30% 20% 30% 20% 30%
Note: Targets are expressed in terms of the percentage of the total public expenditure and the number of public contracts on the above product / service groups to be greened. Thus a 100% target for office IT equipment implies that 100% of public expenditure and 100% of public contracts involving such equipment will be administered through tenders compliant with the EU Common GPP Criteria for this product group. The above targets will be closely monitored and may be adjusted throughout the lifespan of the NAP.
23
The core GPP standards for the above product and service groups are available for download http://ec.europa.eu/environment/gpp/first_set_en.htm and from http://ec.europa.eu/environment/gpp/second_set_en.htm
from
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Monitoring The performance of this NAP will be monitored with the focus on four elements: relevance, effectiveness, efficiency and impact (sustainability of results & long-term value). The National GPP Task Force will be primarily responsible for performing the monitoring. The monitoring and benchmarking exercise will act as an incentive for the uptake of the GPP criteria in national tendering procedures. Throughout the implementation of the NAP, its relevance will be constantly checked and maintained, to ensure that the objectives, strategy and targets remain valid, in the light of any potential developments that may occur during the NAP lifetime. These developments may include policy changes, changes of economic nature, or shifting environmental priorities. Furthermore, the effectiveness in achieving the stated aims (Is the NAP achieving its results?) will be monitored by the Task Force. In this respect, three types of indicators will be used to assess the "level of GPP": Quantitative indicators will be used to assess the uptake and progress of GPP, by comparing the level of GPP (expressed in numbers and values of green tendering procedures) with the overall level of public procurement. Four quantitative indicators will be used: Indicator 1: Percentage of all public tenders (expressed in € values) compliant with the GPP Core Criteria Indicator 2: Percentage of all public tenders (expressed in number of tenders) compliant with the GPP Core Criteria Indicator 3: Percentage of all public tenders (expressed in € values) in each priority product / service group compliant with the GPP Core Criteria Indicator 4: Percentage of all public tenders (expressed in number of tenders) in each priority product/service group compliant with the GPP Core Criteria The above indicators will be computed on a quarterly basis, within a month from the end of each quarter. Qualitative result indicators correspond to targets and measures described in the GPP Strategy (Section 14). These allow the monitoring of the overall progress of the measures identified in the NAP. Progress on these measures will be assessed on a 6-monthly basis. Impact-oriented indicators allow the assessment of the environmental and financial gains delivered by GPP. The EU Commission is currently developing a method for calculating those indicators, which would be based on an analysis of a representative sample of tendering procedures in the Member States. The overall impact of this NAP will be assessed at the end of the 3-year period in 2013.
26
APPENDICES EU GPP Priority Product/Service Scope Definitions Source: ‘GPP Criteria, GPP website http://ec.europa.eu/environment/gpp/gpp_criteria_en.htm (accessed, 25 May, 2011)
1. Construction - This Product Group includes recommendations for the procurement of construction works, including the supply of related services such as cooling, heating and ventilation services and the provision of electricity. It addresses the design, construction, use and disposal phase of buildings such as public services buildings and office buildings. For each of these phases environmental criteria are proposed. Criteria address energy consumption, the use of renewable energy sources (RES), construction materials and products, waste and water management as well as other aspects influencing the environmental impacts of construction: architects’ experience, monitoring and user aspects. The proposed approach focuses on buildings as a system instead of just an accumulation of components. Criteria can be used in tendering procedures for the construction of new buildings, as well as for renovation and maintenance contracts. 2. Food and catering services - This Product Group includes recommendations for the purchase of food and catering services. Specifications are proposed for the following range of products: fruit and vegetables; aquaculture, marine, meat and dairy products; and drinks and beverages; as well as for the performance of relevant catering services. For food, the Core criteria address organic production methods and packaging waste. The Comprehensive criteria also address other aspects, such as the procurement of food produced according to Integrated Production standards1 and animal welfare. For catering services, the Core criteria focus on organic food, and waste minimisation and selective collection; the Comprehensive criteria focus in addition on environmental selection criteria, the use of paper and cleaning products, kitchen equipment, nutrition etc. In addition to the common European criteria national considerations on the procurement of food and catering services may include tender evaluation on the basis of distance from the source of origin. This is commonly referred to as ‘food miles’. 3. Transport - Vehicle types acquired by public administrations vary greatly between vehicles for ordinary use (for example official vehicles, vehicles of inspection bodies, delivery vans or equipment for gardening), emergency vehicles (ambulances, fire engines, cars and police vans…), and special vehicles (sweeping trucks, garbage trucks, buses, etc.).Criteria have been developed for the following three product groups: • • •
Passenger cars directly purchased or contracted under leasing/renting systems Public transport vehicles and services Waste collection trucks and services
The criteria and contracting procedures defined in this document may also be used as guidance to define specifications for the purchase of vehicle types and service contracts not explicitly covered here. The proposed criteria should be read in conjunction with the recently adopted Directive on the promotion of clean and energy efficient road transport vehicles. This Directive obliges public authorities and operators under a public service contract to consider, when purchasing road transport vehicles, the operational life time energy and environmental impacts which shall include at least energy consumption, emissions of CO2 and emissions of pollutants, including NOx, NMHC, and particulate matter. This can be done either by including requirements for energy and environmental performance on each of the impacts considered (as minimum technical specifications or as award criteria) or by monetising these impacts in the purchasing decision according to a calculation methodology provided for in the Directive. The recommended criteria included in this product sheet can provide guidance to public authorities who wish to implement the Directive using the first or
27
second option, namely by including requirements for energy and environmental performance as technical specifications and/or award criteria. Contracting authorities should also take into account the recently adopted Regulation of the European Parliament and of the Council setting emission performance standards for new passenger cars as part of the Community’s integrated approach to reduce CO2 emissions from light-duty vehicles (http://ec.europa.eu/environment/air/transport/co2/co2_home.htm) 4. Electricity - This Product Group cover the purchase of electricity. The most direct way to reduce the environmental impact of electricity consumption is to reduce your demand – through energy efficiency improvements in public buildings and the purchase of more energy efficient energy using products and through measures aimed at consumer behaviour. Both issues are covered by other product groups within Module 3 of this toolkit (construction, office IT equipment). This product sheet includes an implementation note on energy services aimed at improving the energy efficiency of a certain building, which are often tendered in parallel or in combination with the procurement procedure for the supply of electricity. For the Core criteria the specifications focus on the proportion of electricity supplied from renewable energy sources (RES-E) (50% recommended). The award criteria aim to encourage an even higher percentage of RES-E beyond the minimum included in the specifications. For the Comprehensive criteria, the specifications recommend 100% RES-E. 5. Office IT Equipment - Office IT equipment as dealt with in this document covers three sets of products: • • •
Computers - covering both PCs and notebooks Monitors Imaging equipment - covering copiers, printers, scanners, faxes, and MFDs
The scope of products covered is taken from the Energy Star Agreement between the Government of the United States of America and the European Community on the coordination of energy-efficiency labelling programs for office equipment and from the EuP Preparatory Studies for Imaging Equipment. 6. Textiles - This product group covers all products covered by the European Ecolabel for textile products, namely: • • • •
Textile clothing and accessories: clothing and accessories (such as handkerchiefs, scarves, bags, shopping bags, rucksacks, belts etc.) consisting of at least 90 % by weight of textile fibres; Interior textiles: textile products for interior use consisting of at least 90 % by weight of textile fibres. Wall and floor coverings are excluded; Fibres, yarn and fabric: intended for use in textile clothing and accessories or interior textiles. For ‘textile clothing and accessories’ and for ‘interior textiles’: down, feathers, membranes and coatings need not be taken into account in the calculation of the percentage of textile fibres.
7. Copying and Graphic Paper - This product group covers procurement actions for the purchase of copying and graphic paper. This encompasses unprinted paper for writing, printing and copying purposes (up to 170g/m2) sold in sheets or reels. Finished paper products such as writing pads, drawing books, calendars, manuals, etc. have not been included. The criteria are taken from the European Ecolabel, the Nordic Swan label and the Blue Angel label Different sets of criteria are proposed for: • •
Paper based on recovered paper fibres, recycled paper (focus of the Blue Angel label) Paper based on virgin fibre (focus of the European Ecolabel and the Nordic Swan label)
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Contracting authorities are recommended to make reference to both sets of criteria, as alternative ways of achieving the objective of purchasing environmentally friendly paper, to maximise competition and avoid discrimination. 8. Furniture - The proposed criteria cover: •
•
Indoor furniture: This includes indoor furniture for business purposes, e.g. offices and schools, as well as for domestic purposes. It includes all free-standing or built-in furniture units, which are used for storing, hanging, lying, sitting, working and eating. It does not include, however, building products (for example, steps, walls, mouldings, panels), sanitary equipment, carpets, fabrics, office supplies, and other products, whose primary purpose is not to function as furniture. Outdoor furniture: This includes mainly benches, tables and chairs, excluding other products, whose primary purpose is not to function as furniture (such as streetlights, bike-parks, playgrounds, etc.).
The proposed criteria are based on existing ecolabel sources. The proposed criteria focus on the materials which are most typically used in the production of furniture: wood and wood-based materials, metals, plastics, padding and textiles. Criteria are also recommended for coating and adhesives/glues used in the assembly of the product and for packaging. 9. Cleaning Products and Services - This Product sheet covers procurement actions for the purchase of both cleaning products and cleaning services. In terms of products, four categories of products are covered, in line with those covered by the EU Ecolabel (http://ec.europa.eu/environment/ecolabel/index_en.htm): • • • •
All purpose cleaners, sanitary cleaners and window cleaners Detergents for domestic (or similar) dishwashers Hand dishwashing detergents Laundry detergents for domestic washing machines
10. Gardening Products and Services - This product group covers procurement activities for the maintenance of green public areas: the gardening products, machinery and services for the maintenance of public green areas. Gardening services may be carried out directly by the contracting authority’s own staff or through a service company. The document will therefore provide criteria both for the direct procurement of the main products/elements used in garden maintenance: plant species, soil improvers, gardening materials and tools, machinery (lawnmowers, shredders…) and irrigation systems; and for the procurement of gardening services for which additional specifications on transport and contract clauses will be defined. 11. Mobile Phones - There are three main areas: the mobile phone itself, the charger (external power supply) and peripherals; spare batteries and headsets. For the purpose of this GPP product group, mobile phones are defined as a portable battery powered device that is principally used for telephone communication and text messaging, but may include additional features, for example, internet capability and camera/video. For the purpose of this GPP product group, a mobile phone charger is an external power supply specifically designed for charging an associated mobile phone. It will generally be supplied in the product bundle with the mobile phone, however it also includes the provision of spare chargers where these need to be purchased separately. For the purpose of this GPP product group, peripherals include headsets and spare batteries only. Spare chargers are included above.
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12. Combined Heat and Power - The scope for the purposes of this GPP specification is defined further using the Cogeneration Directive as a basis. For the purposes of this GPP specification cogeneration is defined as „the simultaneous generation of thermal energy and electrical and/or mechanical energy‟. The criteria are applicable to cogeneration units, which shall mean a unit that can operate in cogeneration mode. Where the criteria refer to different sizes of cogeneration unit i.e. small or micro, the following definitions shall apply: • •
Micro cogeneration unit shall mean a cogeneration unit with a maximum capacity below 50 kWe. Small Scale Cogeneration shall mean cogeneration units with an installed capacity below 1 MWe.
The full range of CHP scales are included because of the likely GPP purchase of CHP plant by government organisations for the types of application listed in the background report. As well as the public sector buildings, such as schools and hospitals, CHP may also be purchased for smaller buildings, such as individual community housing or for district heating schemes at a range of scales. It is important when deciding whether to choose CHP or not that the economically justifiable heat demands is taken into consideration as well as the electricity demand. The contracting authority should consider if there is sufficient heat demand to warrant CHP and also analyse the advantages and disadvantages of other options e.g. grid electricity before choosing CHP. The electricity and heat outputs can also be used for cooling, however the cooling itself is not a direct output from the CHP plant, and is therefore not included or considered further in this GPP criteria. For example the heat generated from the CHP plant can be used to drive an absorption cooling unit or an air conditioning unit however, the effectiveness of the cooling will be a factor of the actual cooling unit and not the CHP plant. GPP criteria have been developed for air conditioning as part of a separate product group. 13. Thermal Insulation - For the purpose of defining these green public procurement criteria, thermal insulation is defined as material used to keep buildings cooler in summer and warmer in winter by reducing the flow of heat through the exterior surfaces of the building.1 It has six main applications, 1. 2. 3. 4. 5. 6.
Cavity wall insulation. Solid wall insulation. Loft insulation. Floor insulation. Roof insulation. Insulation for pipe work and ducts.
Existing ecolabels tend to define insulation products according to the material they are made from. There are four main categories of material: • • • •
Inorganic mineral fibre. Organic fuel derived. Organic plant/ animal derived. Other.
The existing ecolabels do not currently cover insulation for pipework and ducts or foil-type insulation products. As such, the criteria listed within this document only apply to materials falling into categories 1-5 above. 14. Wall Panels - Wall panels are defined as boards that are used in vertical or angled placement (for example in loft conversions) in a building, where the panel itself is not load bearing and its surface is
30
not the final surface seen in the finished building, i.e. it will be plastered, skimmed, painted, papered etc. Two distinct material types of wall panels have been focused on, as together these materials represent practically the whole wall panel market. These are gypsum plasterboard and wood –based boards. The two materials have been dealt with as separate entities as although their use overlaps, the material content does not and neither do many of the standards they must adhere to. There are several Ecolabels and standards that exist for wall panels. Some cover both materials, such as the Nordic Swan for Wall Panels, the Australian Good Environmental Choice label, while others cover only one of the materials such as the German Blue Angel for Composite Wood Panels, Canadian Ecolabel for gypsum plasterboards, or the Japanese Ecomark for wood based boards. 15. Hardfloor Coverings - For the purposes of the proposed Green public procurement (GPP) criteria, hard floor covering (HFC) are defined in line with the EU Ecolabel for hard coverings. However as explained in the Background Report the GPP specifications are only applicable to hard floor coverings and not other types of hard coverings. The EU Ecolabel defines hard floor covering as follows: Natural Products •
Natural stones (CEN TC 246) are pieces of naturally occurring rock, and include marble, granite and other natural stones. Other natural stones refers to natural stones whose technical characteristics are on the whole different from those of marble and granite as defined by CEN/TC 246/N.237 EN 12670 ‘Natural stones – Terminology’. Generally such stones do not readily take a mirror polish and are not always extracted by blocks: sandstone, quartzite, slate, tuff and schist.
Processed Products (Hardened Products) •
Agglomerated Stones are industrial products manufactured from a mixture of aggregates, mainly from natural stone grit and a binder as defined by JWG 229/246 EN 14618. The grit is normally composed of marble and granite quarry granulate and the binder is made from artificial components as unsaturated polyester resin or hydraulic cement. This group also includes artificial stones and compacted marble.
•
Concrete Paving (CEN/TC 178) units are products for outer floor-coverings obtained by mixing sands, gravels, cement, inorganic pigments and additives, and vibro-compression as defined by CEN/TC 178. This group also includes concrete flags and concrete tiles.
•
Terrazzo Tiles (CEN/TC 229) are a suitably compacted element of uniform shape and thickness, which meets specific geometrical requirements as defined by CEN/TC 229. The tiles are single or dual-layered. The single-layered type are tiles completely made of granulates or chipping of a suitable aggregate, embedded in grey and white cement and water. The dual-layered tiles are terrazzo tiles made up of the first face or wear layer (with single-layered composition) and a second layer, known as backing or base concrete layer, whose surface is not exposed during normal use and which may be partially removed.
Processed Products (Fired Products) •
Ceramic Tiles (CEN/TC 67) are thin slabs from clays and/or other inorganic raw materials, such as feldspar and quartz as defined by CEN/TC 67. They are usually shaped by extruding or pressing at room temperature, dried and subsequently fired at temperatures sufficient to develop the required properties. Tiles can be glazed or unglazed, are non-combustible and generally unaffected by light.
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Clay Tiles (CEN 178) are units which satisfy certain shape and dimensional requirements, used for the surface course of pavements and manufactured predominantly from clay or other materials, with or without additions as defined by CEN 178. 16. Windows - For the purpose of these Green Public Procurement criteria Windows are defined as an opening in a wall or roof with glass mounted in a fixed frame to admit day-light. Often it is possible to open the window through a sliding or hinged component of the frame to allow air to enter into the building. This definition deliberately encompasses external glazed doors and skylights: where ‘window’ is written it refers to all three products. The criteria apply to windows, external glazed doors and skylights that will be used in the building envelope, encompassing residential and commercial properties, and social properties such as schools and hospitals. Technologies considered during the preparation of this document include the glazing (single and multi-pane), spacing distance between the panes, low-E coatings, air or inert gas fill between the panes of glass, and frame design. Currently none of the existing standards and eco-labels covers all climatic regions of Europe, so a pre-existing single eco-label should not be applied as a basis to identify GPP criteria which can be applied across the whole of the EU. 17. Street lighting and Traffic Signs - For both Street Lighting and Traffic Signals the units themselves are considered with respect to life-cycle impacts. Both of these products are considered to be Energy-using Products by virtue of both containing energy using parts and being an energy consumer in itself, therefore it is included at „part‟ and „product‟ level. Poles, building mounts, or any other type of support and the required fixing mounts are considered separately. A public street light will be defined as a: “Fixed lighting installation intended to provide good visibility to users of outdoor public traffic areas during the hours of darkness to support traffic safety, traffic flow and public security” Traffic signals will be defined as: “Red, yellow and green signal lights for road traffic with 200mm and 300mm roundels. Portable signal lights are specifically excluded from the scope of this European Standard.” This in accordance with EN12368: 2006 Traffic Control Equipment – Signal Heads. 18. Road Construction and Traffic Signs - For the purpose of defining these green public procurement criteria (guidelines), this product group is split into two categories: • •
Road construction. Traffic signs.
Road construction is defined as the preparation and building of a road using materials, including aggregate, bituminous binders and additives that are used for the sub-base, road-base and surfacing layers of the road. Traffic signs have three elements: sign facings (containing the sign’s message), substrates (the backing material onto which the facing is attached) and the fixing (the posts or frame onto which the sign is mounted). The scope of this product group does not cover road marking materials, such as paints, other items of road furniture, such as pedestrian walkways, bollards, overhead gantries and central reservations or public street lighting or traffic signals. For information on the latter, please refer to the separate
32
Product Sheet for Street Lighting and Traffic Signals. Similarly, the guidance within this document does not extend to cover the foundations or lighting of traffic signs.
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Appendix 2 Evaluation of level of Green Public Procurement in Malta Government Contracts 1.
Introduction
1.1
Green Public Procurement (GPP) is the approach by which Public Authorities integrate environmental criteria into all stages of their procurement processes by seeking and choosing outcomes and solutions that have the least possible impact on the environment throughout their whole life-cycle.
1.2
The renewed EU Sustainable Development Strategy set a formal GPP target, that by year 2010, the average level of GPP should be the same as the current (i.e. 2006) level of the best performing Member States.24 On 16 July 2008 the Commission presented a proposal to set ambitious targets for GPP linked to common green procurement criteria.25
1.3
The European Commission strongly recommends Member States to increase the level of GPP in their respective countries. The Commission recommended that national action plans should set targets and outline the concrete measures to implement this policy. The Commission communication also identified 10 priority sectors for GPP, based criteria such as the scope for improvements to the environment, market availability and political sensitivity. These 10 product groups, for which detailed guidance has been made available in the form of a GPP toolkit26 are: • • • • • • • • • •
1.4
Paper Cleaning products and services Office IT equipment Construction Transport Furniture Electricity Food and Catering services Textiles Gardening
Another 10 priority product groups are also in the pipeline.27 These are: • • • • • •
Mobile phones Combined Heat and Power (CHP) Boilers Air conditioning and heat pumps Thermal insulation Wall panels
24
EC (European Commission). 2009. Communication from the Commission to the European Parliament, the Council, the European Economic and Socail committee of the Regions Mainstreaming sustainable development into EU policies: 2009 Review of the European Union Strategy for Sustainable Development, COM 2009 400 final [http://eurlex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2009:0400:FIN:EN:PDF, accessed on 25 May 2011]
25
EC (European Commission). 2008. Communication from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions Public procurement for a better environment, COM 2008 400 final. [http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=COM:2008:0400:FIN:EN:PDF, accessed on 16th December 2009].
26
EC (European Commission). (accessed, 25 May, 2011
27
http://ec.europa.eu/environment/gpp/consultation_en.htm, accessed on 18th December 2009.
‘GPP Criteria, GPP websitehttp://ec.europa.eu/environment/gpp/gpp_criteria_en.htm
34
•
Hardfloor coverings
• •
Windows Street lighting and traffic signals
•
Road construction.
1.5
At the same time, a study was commissioned that gives an overview of the level of GPP in 7 Member States in the years 2006 and 2007.28 This study, henceforth referred to as the PriceWaterhouseCoopers (PWC) report, includes a methodology developed for measuring quantitative levels of GPP (number and value of green contracts), as well as the CO2 impact and financial impact of GPP. The methodology developed in this study will be used for monitoring GPP performance in all Member States as from 2010.
1.6
There have been efforts to promote GPP in Malta for some time. In 2006 a draft National Action Plan on GPP was launched, which called for greener procurement with respect to five product groups considered to involve most significant environmental impact, and for which green alternatives were available. The draft National Action Plan was prepared by MEPA in liaison with the following representatives and entities, all of which formed part of a working group: Department of Contracts (DOC), the Malta Standards Authority, the then Ministry for Rural Affairs and the Environment, and the Ministry for Finance. Close liaison was also kept with officials responsible for the national Environmental Technologies Action Plan, as well as national Green Leaders within the various ministers and directors responsible for procurement. In 2009, it was agreed to hand over responsibility for finalising the GPP national action plan to the DOC as focal point. The DOC set up an intergovernmental Task Force on the subject in 2009. This Task Force listed a number of supplementary studies required to feed into the NAP, one of which concerned the need for an evaluation of the current situation. This present study is being carried out to address this requirement.
1.7
This report details the evaluation of the level of GPP in Malta Government contracts awarded during the period 2007-2008. It is based on the methodology provided in the 2009 PWC report, which explores the level of GPP in the EU. However due to short timeframes as noted above, a limited study was carried out, in order to obtain a broad picture of the situation, as explained in section 2 on methodology.
1.8
The report is structured as follows: this brief introduction is followed by Section 2 on methodology, which explains the scope of the current assessment. Section 3 details the results of the evaluation, followed by some concluding remarks in section 4. Annex 1 contains a table with details of the findings of the study.
• 2.1
28
Methodology
The methodology provided in the PWC assessment consists of computing the following indicators for the 10 priority product groups within a sample of government contracts (not tenders) for the period 2006 and 2007. This was carried out on the basis of a questionnaire sent to a statistically representative set of government departments and agencies at local and national level (in the Malta scenario probably about 60 responses would be needed). PWC requested sampled agencies only to describe the last contract within the study time frame when filling in the questionnaire. •
Indicator 1: % GPP of total public procurement in terms of monetary value (core and comprehensive greening identified separately and green criteria provided)
•
Indicator 2: % GPP of total public procurement in terms of # of contracts (core and comprehensive greening identified separately and green criteria provided)
•
Indicator 3: CO2 impact of GPP (relevant criteria for CO2 emissions assessment provided)
PwC Sustainability. 2009. Collection of statistical information on Green Public Procurement in the EU: Report on methodologies, Report compiled by PricewaterhouseCoopers, Significant and Ecofys, January 2009. [http://ec.europa.eu/environment/gpp/study_en.htm, accessed on 16th December 2009].
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•
2.2
Indicator 4: Financial impact of GPP (cost ratios of greened to non-greened contracts provided by EU).
In August 2009, MEPA was requested by the Office of the Prime Minister to read the PWC report and provide an estimate of how long it would take to evaluate 1 contract. In its reply, MEPA indicated that: •
The PWC methodology is based on a questionnaire to various departments and agencies, not an assessment of tenders.
•
In some places the methodology, especially concerning indicators 3 and 4, is not relevant to Malta (e.g. CO2 emissions related to cleaning are estimated on the basis of microfibre cloths used instead of hot water to clean linoleum floors. The latter are not used in Malta).
•
Country-specific coefficients need to be calculated for indicators 3 and 4, (e.g. related to CO2 emissions per kWh for electricity generation, energy use of a typical office and fuel prices) and in indicator 4, these are sometimes needed for various cost elements in the lifetime of a product use (e.g. 6 phases of use for the gardening product group).
2.3
In subsequent discussions DOC and OPM, it was indicated that there might not be need to carry out the entire study, but just get an idea of whether Maltese contracts were being greened on the basis of EU criteria. This is especially so since copies of Malta's tenders above 40,000 Euros are held at DOC. Indeed it was suggested that one option could be to assess only the last contract for each of the 20 product groups, i.e. only 20 tenders, and to address only the first 2 indicators. This study would still require substantive research into whether particular Maltese GPP practices fit the definition of 'green' in the GPP toolkit. It was also clarified that the study was required by December 2009.
2.4
On this basis, MEPA advised that the following options were available: •
Option 1: Review of 10/20 tenders by MEPA by December 2009 without additional resources.
•
Option 2: Review of all relevant 2009 tenders (amounting to 300). One MEPA staff member would need to be dedicated full-time to this task in order to complete the review by December 2009.
•
Option 3: Carrying out of a full study along lines of PWC methodology. This is beyond MEPA capacities and it would need to be sub-contracted if results are required by midDecember 2009.
2.5
MEPA recommended the carrying out of both Option 2 and 3 in parallel as the optimal solution. This is because it would be preferable for Malta to address the instances where the EC methodology does not apply to Malta, rather than waiting for an external assessment of Malta’s GPP levels with certain irrelevant criteria. Nevertheless, due to lack of resources and short timeframes, it was agreed to take forward Option 1. It was understood that the study would provide a broad-brush evaluation, which would highlight key issues related to the evaluation of the level of GPP in Malta, but that it would not be considered to be based on a representative sample.
2.6
When designing the methodology for the Malta study, the following points were agreed upon: •
The study would focus on the period 2007 - 2008, which represents the most recent full twoyear period;
•
The study would focus on the 20 product groups identified by the EC;
•
The study would consider the latest tender awarded for each product group;
•
The study would focus solely on the Core criteria provided for each product group in the GPP Toolkit;
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•
Since the GPP criteria in the EC Toolkit are each necessary for the fulfillment of the GPP standards, where a tender did not fulfill one of the criteria an assessment of the remaining criteria was not performed. This was decided due to time constraints;
•
When the tender under consideration contained a set of standards different from those in the GPP Toolkit, MSA was contacted regarding advice on the comparability of the standards;
•
Where no tenders are found to have been awarded in a particular product group during the 2007-2008 study period, this is highlighted in the results.
3.
Results
3.1
The findings from the assessment are listed per product group in Annex 1.
3.2
The findings indicate that tenders were not issued in the study period for three product groups: combined heat and power, mobile phones and boilers (for space heating).
3.3
The evaluation shows that for the period 2007 and 2008, only one contract, that relating to cleaning products and services, may be considered to have been greened, although other contracts contained elements of GPP. One matter that is of concern, however, was that the environment was only given 5% of award points, suggesting that although environmental criteria were added, they would not significantly influence the outcome of the decision-process.
3.4
Nevertheless, nine other tenders contained, to a lesser or greater degree, an element of GPP. For example, in the case of the tender selected to represent the food and catering services product group, one of the two GPP criteria, that relating to food freshness, was included in the tender. The latter specified that all kinds of soups must be made with fresh products and that every dessert should include a choice between fresh fruit and fruit-based sweets.
3.5
There was also an interesting finding relating to some level of GPP being present in certain tenders, in the tender selected to represent the street lighting and traffic signals and the road construction and traffic signs product groups. In the case of large projects with an EU funding element, such as that representing the Road Construction product group, procedures that provide for a certain element of GPP are in place. The tender document had been referred to the Ministry for Resources and Rural Affairs (MRRA), which is responsible for Climate Change, for a ‘green carbon footprint check’ before being finalised. In its response regarding the road tender, the MRRA highlighted certain considerations that match rather closely two of the award (not the selection) criteria in the GPP toolkit. The latter specifies the following criteria regarding road surfacing materials:
3.6
•
Selection criteria: Technical capacity to take the necessary environmental management measures to ensure that construction works are carried out in an environmentally-friendly manner. This capacity could be verified either by the contractor being EMAS or ISO 14001 certified or by other means.
•
Award criteria: A) Use of recycled materials; B) Evaluation and reduction of energy consumption throughout the lifecycle of the project (raw material production to paving); and C) Material and road life spans.
The MRRA response requested the following measures: •
Use of, as far as technically possible, recycled material available at WasteServ Malta Ltd as granular sub-base;
•
Seek to utilise LED traffic lights where applicable;
•
Seek to generate electricity from photovoltaic installations for lighting requirements, were appropriate; and,
•
Harvest rainwater for irrigation in soft areas.
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3.7
However in its response, AdT, as the agency responsible for the tender replied as follows regarding use of waste materials: •
It cannot impose on tenderers ‘to purchase any waste material available at Waste Serv Ltd as these are commercial matters’;
•
The use of glass, ceramic, rubber and other material are not currently permitted by the Road Works (Design and Construction) Specifictions in LN 364/2003 as the performance of these materials in roads are to date not scientifically proven and the use of these materials in road requires further scientific research.
3.8
Regarding LED traffic signals, the agency replied: ‘Traffic signals are supplied by [AdT] which is already testing the performance of LED signals on a number of pelican crossings’.
3.9
Regarding electricity generation for street lighting, AdT replied that ‘the generation of electricity for street lighting requirements is not technically feasible … for the following reasons: lighting is required for about 13 hours during night time; any available photovoltaic-powered outdoor lighting does not provide the luminance that is required for street lighting required as per MSA EN 13201-2:2003. In the tender document we have specificed FULL CUT-OFF Luminaries that minimise glare and more energy efficient than the standard luminaries used by Enemalta.’
3.10
Regarding Harvesting of Storm Water, AdT advised that: ‘the work tendered for this road includes the construction of 3 reservoirs for the collection of surface water runoff and ducts for drip irrigation system for soft areas are also included (drip irrigation would be installed by ELC [company responsible for soft areas]). The ducts for the drip irrigation system have also been designed for the potential use of water from the Sant’ Antnin Water Treatment Plant.’
3.11
This correspondence illustrates that there are some cases (perhaps restricted to EU-funded projects) a strong level of commitment to GPP within the public service. It is important that such efforts are streamlined with the requirements in the EU GPP Toolkit.
4.
Conclusions and recommendations
4.1
The findings from this broad-brush survey indicate that out of 20 product groups, no tenders were issued in the study period of 2007 and 2008 for three product groups, the tender for one product group was found to be in line with the criteria in the GPP Toolkit, and the tenders representing nine other product groups had an element of GPP. In this respect, while Malta may need to take concerted action to achieve EU GPP goals, this assessment has shown that there were already efforts being made to GPP in Malta during the study period.
4.2
In terms of the more procedural aspects of this, since all tenders exceeding 40,000 euros need approvals from the DOC, this position is an excellent opportunity for promoting the use of GPP within the Maltese public service. However, given the small size of many of the government departments and agencies in Malta, some thought should be given also to setting procedures for smaller contracts.
4.4
It is also important that existing procedures such as MRRA’s ‘green check‘ are streamlined with processes seeking to implement the EU GPP criteria.
4.5
This study has also brought to light a number of procedural considerations related to the need for training of staff at contracting bodies, so that tender drafters become familiar with the GPP criteria, as well as the need for monitoring of the contractors for continued compliance with the criteria (for example related to cleaning products).
4.6
Finally, it is important to re-state that this broad-brush study is not aimed to be representative, and that it simply aims at obtaining a broad picture of the situation in the period 2007 - 2008. It is understood that the levels of GPP in 2009 already increased for certain product groups. Moreover, it is important that the full assessment of GPP in Malta, based on the PWC methodology is undertaken in order to prepare Malta for the expected EC assessment since as stated earlier, certain criteria may not apply to Malta.
38
Appendix 3 Qualitative Research on Green Public Procurement In order to grasp a better understanding on the current situation concerning Green Public Procurement (GPP) in the Maltese public administration Qualitative Research was conducted. The method of inquiry adopted was a two phase approach wherein ten Green Leaders whose principal role is mainly to raise awareness on environmental issues in their respective Ministries were asked about their attitude towards GPP. The following questions were asked: •
What is currently being done in the public administration with regards to green public procurement?
•
Was green public procurement taken into consideration in departmental tenders or when procuring by obtaining quotations during the past year?
•
Is there an opportunity to encourage the market for new and innovative green products? Can the public sector be more innovative/greener?
The first two questions were answered following desk research and discussions that were initiated by the Green Leaders with their respective Directors of Financial Management. The third question was answered by carrying out an hour-long session of brainstorming, where green leaders were asked to come up with ideas for innovating the green procurement sector within the public administration. QUESTION 1 What is currently being done in the public administration with regards to green public procurement? When it comes to Green Public Procurement this concept appears to be commonly associated with the procurement of paper and office items. This may be due to the fact that a framework agreement for paper bearing the Forest Stewardship Council (FSC) mark was recently awarded. As a result, most of the paper used across the government carries this mark. Many departments also appear to take the initiative to purchase reusable ink cartridges for printers. However, since its purchase is not centralised as in the case of copying paper, its purchase remains largely at the discretion of each and every department. Most paper used has the FSC stamp as it was procured through a main government-wide tender. Many departments use reusable ink cartridges for printers. This is not as streamlined as paper usage because the system is not centralised and it is at the discretion of each department to procure the type of cartridges needed. QUESTION 2 Was green public procurement taken into consideration in departmental tenders or when procuring by obtaining quotations during the past year? When answering this question, some green leaders argued that Green Public Procurement, was not taken into consideration due to the nature of the tenders issued. However, green public procurement was more likely to be taken into consideration in tenders relating to the purchasing of IT equipment and hardware. On the other hand, green public procurement was taken into consideration when procuring office supplies e.g. paper items purchased were in line with environmental standards required by EU legislation; toners purchased were predominantly either refilled or remanufactured.
39
Another green leader pointed out that when refurbishing a property, during the process of tendering, green public procurement was taken into consideration when purchasing lifts, air conditioners and other electrical installations. The major setback in this regard seems to be that no formal documentation and procedures exist to guide the individual who is drawing up the tender, and the green leader might not always be aware of all the departmental tenders that are issued, if he or she are not consulted at the drafting stage. QUESTION3 Is there an opportunity to encourage the market for new and innovative green products? Can the public sector be more innovative/greener? The green leaders present for this session were asked to come up with ideas that can be used to incentivise the market to provide green products and services. The ideas presented below are in their raw form, since they were produced in a brainstorming session, however the best ideas can be selected and further worked upon to be applied to the local context. The ideas produced are: •
Create either a centralised unit or a department for procurement government-wide. This will ensure that even departmental tenders and procurement by quotations are green
•
Specify the environmental standards required in the tender
•
Carbon footprint of the product or service to be included with the information. Enforce measures to offset the carbon footprint of the product or service – the less the carbon footprint, the less the cost to offset it
•
Provide publicity for the winning bidder who has the required green criteria
•
Preplanning and informing the market what will be required before the actual tender is published. This will help potential bidders (mostly importers) to go out and look for green products that are available on the market
•
Tax credits and / or investments given to companies who win the green tender
•
Provide free waste collection by percentage or periodically to the supplier from the winning bid
•
Packaging to be returned to the provider to be reused or recycled
•
Provide free training courses to the winning company’s staff at MCAST, or provide twinning sessions with foreign companies
•
Subsidise trade mission participation for networking purposes to the bidders on green products and services
•
Free VRT for vehicles in fleet. This is similar to the provision of free waste collection, training of staff and trade mission subsidies to the winning bidder.
•
Offer to help the winning bidders build a teleworking infrastructure for their business where possible. A system put forward by a local company, where the energy-efficient product is given for free, then payment is given back according to the savings generated through the same product in a number of years
•
Include printers and ink cartridges in the e-procurement system. This will help to harmonise the system and guarantee that reusable cartridges are available to all printers.
40
Appendix 4 Carbon footprint and environmental compliance of EU Funded projects Background and objective During 2007, the European Union agreed on a pact to slash greenhouse gas emissions by 20% within 13 years unilaterally and pledged to push for an agreement with the US and other industrialised countries to cut them by 30% by the same deadline. European environment ministers made the target for 2020 binding on all 27 EU countries. The Governments of Europe are working together to tackle climate change and reduce the EU’s carbon emissions. However, to really make a difference, we all need to think about our personal environmental impact and take steps to reduce our carbon footprint. Through EU funds, large amounts of money are invested in projects in Malta. During the design phases of these projects, however, environmental impacts are not always considered appropriately, leaving clear opportunities for environmental savings unutilised or difficult to achieve at later stages in the process. To improve on Government’s “environmental procurement”, the Ministry for Resources and Rural Affairs adopts a mechanism that would guarantee environmental awareness at the very early stages of the procurement process, through the review of tender documents (for works, services and supply contracts) before they are issued for publication. This review aims to highlight opportunities to reduce the carbon footprint and the overall environmental performance of EU funded projects that should be taken forward in the tender conditions. Mechanism The proposed mechanism follows a two-pronged approach, building on the knowledge already available within the respective Ministries as well as on the specific knowledge available within the Ministry for Resources and Rural Affairs. A team set up within the Ministry for Resources and Rural Affairs reviews and advises Government entities on tender documents before they are issued for publication. More specifically, to meet the objective of reducing Malta’s carbon emissions, all Government tenders are subjected to a formal review procedure before publication aimed at identifying environmental improvement opportunities. This review procedure works as follows: The Beneficiary of the EU funds designs the project concept and drafts a project proposal and tender documents. Following approval of the project in principle within the respective Ministry, the advance draft project proposal and tender documents are forwarded to the Ministry for Resources and Rural Affairs for a review of the proposed project’s environmental performance; The draft project proposal and tender documents will be reviewed within a reasonable timeframe by the team set up within the Ministry for Resources and Rural Affairs from the viewpoint of identifying environmental improvement opportunities, aimed at reducing the carbon footprint of the proposed project. The project concept as such, or its underlying rational, will not be subject to review. Cost efficient opportunities for improvement will be communicated to and discussed with the project leader responsible for the respective tender; The project leader will be responsible for including the suggested changes in the final version of the tender document and prepares a brief report to the Ministry for Resources and Rural Affairs on how the suggested changes have been implemented in the final tender document, which will also be submitted to the Ministry; Once the Ministry agrees on how the suggested changes have been included in the tender document, it will issue a statement addressed to the Department of Contracts and copied to the Planning & Priorities Coordination Division that the tender document has been reviewed from an environmental performance point of view and can be taken forward for publication.
41
The process outlined above allows the Ministry for Resources and Rural Affairs to establish common standards of environmental procurement across Government departments, while at the same time maximising Government’s contribution to the reduction of greenhouse gas emissions. Since the project concept as such will not be subject to discussion and experienced resources will be dedicated to this task, the proposed mechanism is not envisaged to have a material impact on the time needed to prepare a tender document, only if done concurrently with reviews done by the Department of Contracts. In summary •
The Ministry for Resources and Rural Affairs aims to contribute to the reduction of Malta’s carbon footprint through a more environmental procurement process.
•
Through the introduction of a review during the tender development process, where EU funding is concerned, environmental performance can be improved in the most cost and time effective manner.
•
The Ministry for Resources and Rural Affairs has a team dedicated to assisting Government departments with the drafting of tender documents, taking into full consideration opportunities for reducing a project’s carbon footprint and establishing common standards for environmental procurement which is in line with the relative environment-friendly measures and directives.
•
The Ministry for Resources and Rural Affairs will provide for ongoing support to all Ministries, in particular through dissemination of knowledge, guidelines and best practice.
42
Appendix 5 Public Procurement Expenditure & Supplier analysis Overview of Public Procurement in Malta i.
The expenditure analysis in this report is based on public procurement expenditure figures pursuant to public procurement legislation29. Public procurement expenditure represents approximately 3.1% of our Gross Domestic 30 Product (GDP) , more specifically, 2.4%, 2.7%, 4.0% 3.3% and 3.1% of our GDP for years 2004 till 2008 respectively. Tables 4 and 5 capture the total public procurement spend and the total number of contracts awarded over the past five 31 years .
ii.
An analysis of the breakdown of procurement activity by contract type that is, by services, supplies and works in terms of their monetary value and by number of awarded contracts (tables 6 and 7 with corresponding figures 3 and 4 refer) reveals that works contracts comprised 51% (€ 91,195,742) of the total procurement expenditure for year 2008. However, on analysing this same data set in terms of the number of awarded contracts for year 2008, it transpires that supply contracts account for 62% (n = 1,535) of the total number of awarded contracts whilst the number of works and services contracts being almost equally split (19%).
Table 4: Total Public Procurement Spend over the past five years Year
Below Threshold Above threshold Totals:
2004 €
2005 €
2006 €
2007 €
2008 €
70,679,772
80,225,392
99,933,673
84,240,426
73,356,516
39,075,085
49,524,093
106,261,111
98,216,585
107,575,588
109,754,857
129,749,485
206,194,784
182,457,011
180,932,104
29
Public Contracts Regulations, L.N. 177 of 2005; Public Procurement of entities operating in the Water, Energy, Transport and Postal Services Sectors, L.N. 178 of 2005.
30
Gross Domestic Product figures is based on National Statistics Office, News Release (9 December 2009) Gross Domestic Product, Reference 220/2009.
31
Public Procurement Statistics are compiled by the Compliance Directorate within the Department of Contracts.
43
Figure 1: Total Public Procurement Spend over the past five years 250,000,000 206,194,784
Euro
200,000,000
182,457,011
180,932,104
150,000,000 129,749,485 109,754,857
100,000,000 50,000,000 0
2004
2005
2006
2007
2008
Year
Table 5: Total number of contracts awarded over the past five years Year
Below Threshold Above threshold Totals:
2004
2005
2006
2007
2008
2,139 58 2,197
2,217 111 2,328
2,212 142 2,354
2,562 119 2,681
2,422 86 2,508
Figure 2: Total Public Procurement Spend over the past five years
Number of Contracts
3,000 2,681
2,500 2,000
2,197
2,328
2,508
2,354
1,500 1,000 500 0 2004
2005
2006
2007
2008
Year
Table 6: Total Public Procurement Spend for year 2008 by Contract Type in terms of Monetary Value Below EU Threshold Above EU Threshold TOTALS
Services Supplies Works
€ 11,554,875 27,675,547 34,126,094 73,356,516
€ 16,473,782 34,032,158 57,069,648 107,575,588
€ 28,028,657 61,707,705 91,195,742 180,932,104
Table 7: Total Public Procurement Spend for Year 2008 by Contract Type in terms of Number of Contracts
Services Supplies Works
Below EU Threshold 462 1,474 486 2,422
Above EU Threshold 24 61 1 86
TOTALS 486 1,535 487 2,508
44
Figure 3: Awarded contracts in terms of Monetary value (2008)
Figure 4: Awarded contracts in terms of Number of Contracts (2008)
Services 15%
Works 51%
Supplies 34%
Works 19%
Services 19%
Supplies 62%
Expenditure Analysis: Breakdown of procurement activity by GPP priority product/service group Objectives This expenditure analysis in conjunction with other studies/enquires seeks to provide a comprehensive understanding of the local scenario. As such it will inform and guide Malta’s National Action Plan on Green Public Procurement by: i.
providing baseline data against which to measure future progress
ii.
determine the level of impact of each priority product/service group as identified by the Commission for greening
iii.
assist in the selection of Malta’s priority product/service GPP
targets. This will be made possible by establishing the following: a.
The total public purchasing amount in terms of monetary value for each of the 10 priority product/service groups that have been identified for greening by the Commission for the years 2007 and 2008;
b.
The total public purchasing amount in terms of number of contracts for each of the 10 priority product/service groups that have been identified for greening by the Commission for the years 2007 and 2008;
c.
The total public purchasing amount in terms of monetary value for each of the forthcoming 10 GPP product/service groups identified for greening by the Commission for years 2007 and 2008;
d.
The total public purchasing amount in terms of number of contracts for each of the forthcoming 10 GPP product/service groups identified for greening for years 2007 and 2008;
e.
The identification of other possible priority product/service groups for greening procurement contracts.
Methodology i. This analysis was based on the consolidated statistical data reports as submitted by all contracting authorities within the government sector for public contracts awarded during the -Years 2007 and 2008. ii.
Public procurement expenditure figures include those pursuant to Public Contracts Regulations, L.N.177 (2005) and Public Procurement of entities operating in the Water,
45
Energy, Transport and Postal Services Sectors, L.N. 178 (2005). iii. The analysis was broken down under three main categories, i.e. for amounts: a. less than €47,000 b. greater than €47,000 but less than €133,000 c.
greater than €133,000
iv. On the basis of the subject title of the awarded contracts, (the subject title captures the contract’s main scope) all awarded contracts were classified according to the 32 product/service scope definitions as defined in the EU GPP toolkit for the 10 established priority product/service GPP groups (hereinafter referred to as the First set priority sectors) and the prospective 10 priority product/service GPP groups (hereinafter referred to as the Second set priority sectors). Therefore, the classification was based on a total of 20 priority sectors. v.
Contracts that did not fall within the definition scope of the priority sectors were identified as such.
Results 1) The first set of product/service groups identified by the Commission for greening represent 36% (€65,609,097) and 16% (€29,640,344) of the total public procurement expenditure for years 2007 and 2008 respectively. When taking into consideration the procurement spend of the 20 priority sectors (i.e. first and second set priority sectors) as identified by the Commission for greening, this represents 44% (€ 800, 65,419) and 22% (€ 39,104,791) of the total public procurement expenditure for the years 2007 and 2008 respectively. The relatively higher procurement spend during year 2007 could be mainly attributed to the following product groups: Office IT equipment, Transport, Food and Catering services, Hard floor coverings, Road Construction and Traffic Signs. Priority sectors procurement expenditure as a percentage of total procurement spend - 2007
Priority sectors procurement expenditure as a percentage of total procurement spend - 2008 Expenditure for 1st set 16%
Expenditure for 1st set 36%
Other Procurement Expenditure 56%
Other Procurement Expenditure 79%
Expenditure for 2nd set 8%
Expenditure for 2nd set 5%
2) In terms of number of awarded contracts, the 20 priority sectors represent 32% (n= 847) and 26% (n= 657) of the total contracts awarded for the years 2007 and 2008 respectively. 3) Tables 1 – 4 portray the breakdown of the priority sectors (1st and 2nd set) in terms of monetary value and awarded contracts for the years 2007 – 2008. It could be noted that the expenditure patterns for the First set priority sectors, during year 2007, Office IT equipment (42%), Construction (27%), Food and Catering (11%) and Transport (9%) account for 89% of total procurement expenditure falling within the GPP scope. In year 2008, Construction (52%), Office IT equipment (15%) and Transport (11%) made up 78% of the total procurement expenditure falling within the GPP scope.
32
EUROPA- Environment- Green Public Procurement – Toolkit on Green Public Procurement http://ec.europa.eu/environment/gpp/consultation_en.htm (accessed 30 December 2009)
46
Procurement spend of product/service groups as a percentage of total expenditure for the first set of priority sectors identified for greening - Year 2008
Food and Catering services 7%
Textiles 5%
Gardening products and Copying and services graphic paper 3% 0%
Cleaning Products and services 0% Office IT equipment 15%
Electricity 1% Furniture 6%
Construction 52%
transport 11%
Procurement spend of product/service groups as a percentage of total expenditure for the first set of priority sectors identified for greening - Year 2007 Food and catering services 11% Electricity 0%
Gardening Textiles products and 1% services 2%
Furniture 3%
transport 9% Construction 27%
Copying and graphic paper 1% Cleaning Products and services 4%
Office IT equipment 42%
4) When it comes to assess the number of awarded contracts falling within the scope of the First set priority sectors, during year 2007, one finds that Construction (35%), Transport (15%), Cleaning products and services (12%), and Furniture (9%) account for 71% of the total number of awarded contracts concluded in the sectors for which common GPP criteria have been established. During year 2008, Construction (32%), Food and catering services (20%), Furniture (14%) and Transport (11%) accounted for 77% of the total number of awarded contracts falling within this scope.
47
Percentage of number of contracts awarded within scope of first set of priority sectors identified for greening - Year 2007 Textiles Food and Catering 7% services 7%
Gardening products and services 5%
Copying and graphic paper Cleaning Products 2% and services 12%
Electricity 1%
Office IT equipment 7%
Furniture 9%
Construction 35%
transport 15%
Percentage num ber of aw arded contracts w ithin scope of 1st set of priority sectors identified for greening Year 2008 Textiles 7%
Gardening products and serv ices 4%
Copy ing and graphic paper 1%
Cleaning Products and serv ices 2% Of f ice IT equipment 8%
Food and Catering serv ices 20%
Construction 32%
Electricity 1% Furniture 14%
transport 11%
5) It therefore transpires that in order to meet the 50% target as announced by the Commission, COM (2008) 400 final33, (this target needs to be expressed in both value and number) the following sectors that is, Office IT equipment, Construction, Food and Catering services, Transport, Cleaning products and services and Furniture are worth given due consideration for inclusion as key priority sectors for greening procurement contracts.
33
the Commission proposes that, “…… by the year 2010, 50 % of all tendering procedures should be green, where "green" means "compliant with endorsed common “core” GPP criteria as referred to in Section 4.1. The percentage would be expressed in both number and value of green contracts as compared to the overall number and value of contracts concluded in the sectors for which common “core” GPP criteria have been identified.” COM (2008) 400 final, p 8.
48
6) In view of the fact that the period of this analysis captures procurement spend activity over a period of two years (2007-2008) procurement trends cannot be extrapolated. Nevertheless, an in-depth look at the expenditure breakdown patterns of the above mentioned product groups reveal the following: a. Office IT equipment – The major spend of contracts in connection with Office IT equipment fall under the EU threshold bracket (i.e. equal or above € 133,000) for years 2007 (€26,966,695, [98.4%]) and 2008 (€3,85382,4, [86.3%]). However, this spend accounts for only 15 awarded contracts (both years included). The majority of awarded contracts (n=30 in year 2007; n=32 in year 2008) fall below the EU Threshold. This procurement spend amounts to € 4353, 10 (1.6%) and € 528,003 (13.7%) respectively. 34
b. Construction – The procurement spend relating to this sector reveal that 98% (€17,537,270) and 58% (€8,966,085) of awarded contracts for the years 2007 and 2008 were below €133,000. The vast majority of contracts, 99.5 % (n=190) and 97% (n=173) further confirm that the main focus of government tenders that are being issued in this respect fall below €133,000. c.
Food and Catering Services – It could be noted that in year 2007 one contract worth €6,154,205 was awarded. This appears to have been a one off contract and therefore for the purpose of this analysis should not be regarded as the norm. Contracts falling below the €133,000 threshold amounted to €1,071,346(n=38, [97%]) and €1,450,350 (n= 107, [98%]) for years 2007 and 2008 respectively.
d. Transport – In year 2007 a total of 6 contracts above the €133,000 threshold, total amounting to €3,092,694 were awarded. The majority of awarded contracts fall below the €133,000 bracket, that is, 92% (n= 73) and 98% (n=57) for years 2007 and 2008 respectively. The total procurement spend under this bracket amounts to €2,725,521 and €2,415,468 for years 2007, 2008 respectively. e. Cleaning products and services – On analyzing the procurement activity as depicted in the tables hereunder, it could be noted that the major spend under this product group occurred during year 2007, total amounting to €2,791,124 (n=65), whereas during year 2008 the total spend amounted to €114,094 (n=11). The relatively increased spend during year 2007 appears to be mostly due to the fact that 3 contracts falling under the EU threshold bracket, total amounting to €1,800,606 were awarded. f.
Furniture – The total public procurement spend under this product group amount to €1,905,277 (n = 46) and €1,888,284 (n=78) for years2007 and 2008 respectively.
The majority of awarded contracts, 93.5% (n=43) and 96% (n=75) for years 2007 and 2008 fall below the EU threshold.
34
It is worth reminding that according to the definition provided by the GPP training toolkit this product group addresses the design, construction, use and disposal phase of buildings such as public services buildings and office buildings.
49
Table 1: Breakdown of total purchasing amount in terms of monetary value for first set priority sectors Year 2007 Total Procurement Spend GPP Product Group Classification (first set)
€65,609,097 % of Total Total Procurement Purchasing Spend within Amount GPP scope
Below €47,000
Equal or above €47,000
Equal of above €133,000
Copying and Graphic Paper
45,808
235,725
158,165
439,698
Cleaning products services
714,698
275,820
1,800,606
370,456
64,854
Construction
1,276,565
Transport
Year 2008 Total Procurement Spend
€29,640,344 % of Total Total Procurement Purchasing Spend within Amount GPP scope
Below €47,000
Equal or above €47,000
Equal of above €133,000
0.67%
86,320
0
0
86,320
0.29%
2,791,124
4.25%
114,094
0
0
114,094
0.38%
26,966,695
27,402,005
41.77%
217,738
310,265
3,858,324
4,386,327
14.80%
16,260,70 5
342,418
17,879,688
27.25%
2,791,440
6,174,645
6,549,330
15,515,415
52.35%
1,123,296
1,602,225
3,092,694
5,818,215
8.87%
849,625
1,565,843
720,971
3,136,439
10.58%
Furniture
374,667
818,417
712,193
1,905,277
2.90%
1,113,810
269,502
504,972
1,888,284
6.37%
Electricity
0
87,222
0
87,222
0.13%
43,524
134,348
0
177,872
0.60%
Food and Catering Services
516,129
555,217
6,154,205
7,225,551
11.01%
1,175,411
274,939
596,397
2,046,747
6.91%
Textiles
427,706
84,586
0
512,292
0.78%
632,312
599,475
209,643
1,441,430
4.86%
186,272
1,361,753
0
1,548,025
2.36%
329,528
517,888
0
847,416
2.86%
Totals:
65,609,097
100.00%
29,640,344
100.00%
Office equipment
Gardening Products Services
and IT
and
Totals:
50
Table 2; Breakdown of total purchasing amount in terms of number of contracts for first set priority sectors Year 2007 Total number of Contracts
Year 2008 Total number of Contracts
533
539
Below €47,000
Equal or above €47,000
Equal of above €133,000
Total number of Contracts
% of Total number of Contracts within GPP scope
Copying and Graphic Paper
4
3
1
8
1.50%
3
0
0
3
0.56%
Cleaning products services
52
10
3
65
12.20%
10
0
0
10
2.04%
28
2
5
35
6.57%
27
5
10
42
7.79%
Construction
82
108
1
191
35.83%
144
29
5
178
33.02%
Transport
55
18
6
79
14.82%
39
18
1
58
10.76%
Furniture
22
21
3
46
8.63%
72
3
3
78
14.47%
Electricity
0
3
0
3
0.56%
1
2
0
3
0.56%
Food and Catering Services
30
8
1
39
7.32%
103
4
2
109
20.22%
Textiles
34
4
0
38
7.13%
31
4
1
36
6.68%
19
10
0
29
5.44%
17
4
0
21
3.90%
Totals:
533
100.00%
538
100.00%
GPP Product Group Classification (first set)
Office equipment
Gardening Products Services
and IT
and
Below €47,000
Equal or above €47,000
Equal of above €133,000
Total number of Contracts
% of Total number of Contracts within GPP scope
Totals:
51
Table 3: Breakdown of total purchasing amount in terms of monetary value for second set priority sectors Year 2007 Year 2008 Total Procurement Spend Total Procurement Spend % of Total Equal or Equal of GPP Product Equal or Equal of Total Procurement Total above above Group above above Purchasing Spend within Purchasing Below Below Amount GPP scope €47,000 €47,000 €133,000 Amount Classification €47,000 €47,000 €133,000
% of Total Procurement Spend within GPP scope
Mobile Phones
0
0
0
0
0.00%
0
0
0
0
0.00%
Combined and Power
0
0
0
0
0.00%
0
0
0
0
0.00%
0
0
0
0
0.00%
0
0
0
0
0.00%
Air Conditioning and Heat Pumps
398,401
36,457
172,374
607,232
4.20%
147,830
150,373
0
298,203
3.15%
Thermal Insulation
151,037
607,853
0
758,890
5.25%
73,184
985,343
0
1,058,527
11.18%
8,307
69,925
0
78,232
0.54%
70,109
0
0
70,109
0.74%
Hardfloor Coverings
440,552
1,669,640
0
2,110,192
14.60%
500,283
5,285,215
0
5,785,498
61.13%
Windows
0
223,921
0
223,921
1.55%
137,882
0
0
137,882
1.46%
264,113
380,185
0
644,298
4.46%
113,181
47,000
0
160,181
1.69%
1,267,772
8,765,785
0
10,033,557
69.41%
427,766
1,526,281
0
1,954,047
20.65%
Totals:
14,456,322
100.00%
9,464,447
100.00%
Heat
Boilers
Wall Panels
Street and Signals
Lighting Traffic
Road Construction and Traffic Signs
Totals:
52
Table 4: Breakdown of total purchasing amount in terms of number of contracts for second set priority sectors Year 2007 Total number of Contracts
Year 2008 Total number of Contracts
312
118
Below €47,000
Equal or above €47,000
Equal of above €133,000
Total number of Contracts
% of Total number of Contracts within GPP scope
Mobile Phones
0
0
0
0
0.00%
0
0
0
0
0.00%
Combined and Power
0
0
0
0
0.00%
0
0
0
0
0.00%
Boilers
0
0
0
0
0.00%
0
0
0
0
0.00%
Air Conditioning and Heat Pumps
25
2
1
28
8.97%
14
2
0
16
13.56%
Thermal Insulation
9
13
0
22
7.05%
4
2
0
6
5.08%
Wall Panels
3
2
0
5
1.60%
4
0
0
4
3.39%
Hardfloor Coverings
31
29
0
60
19.23%
26
8
0
34
28.81%
Windows
0
10
0
10
3.21%
4
0
0
4
3.39%
23
13
0
36
11.54%
17
1
0
18
15.25%
71
80
0
151
48.04%
25
11
0
36
30.51%
Totals:
312
100.00%
118
100.00%
GPP Product Group Classification
Street and Signals
Heat
Lighting Traffic
Road Construction and Traffic Signs
Below €47,000
Equal or above €47,000
Equal of above €133,000
Total number of Contracts
% of Total number of Contracts within GPP scope
Totals:
53
7) Public procurement spend across the 2nd set of priority sectors represent 8% (€14,456,322) and 5% (€9,464,447) for years 2007, 2008 respectively from the total public procurement expenditure. It is worth noting that all expenditure under this category for years 2007 and 2008 (with the exception of Air Conditioning and Heat Pumps for year 2007) fell below the €133,000 threshold (table 3 refers). 8) On examining public procurement activity across the 2nd set of priority sectors it could be noted that contracts for Boilers, Mobile Phones and Combined Heat and Power were not awarded during years 2007 and 2008. Contracts awarded for Road Construction and Traffic signs together with Hard floor coverings comprised 84% (€12,143,749 [n= 211]) and 82% (€7,735,545 [n=70]) for years 2007 and 2008 respectively of the total spend within this 2 group of priority sectors. nd
9) The award of contracts in connection with Air Conditioning and Heat Pumps and Thermal Insulation accounted for 9% (€1,366,122 [n=50]) in year 2007 and 14% (€1,356,730, [n=22]) in year 2008. Procurem ent spend of poduct/service groups as a percentage of total expenditure for the 2nd set of priority sectors identified for greening - Year 2007 Mobile Phones 0%
Boilers 0%
Air conditioning and Windows Heat Pumps 2% 4%
Street Lighting and Traf f ic Signs 4%
Road Construction and Traf f ic Signs 69%
Thermal Insulation 5% Hard f loor-Cov erings 15% Wall Panels 1% Combined Heat and Power 0%
Procurem ent spend of product/service groups as a percentage of total expenditure for the 2nd set of priority sectors identified for greening - year 2008 Mobile Phones Street Lighting and 0% Traf f ic Signs 2% Road Construction and Traf f ic Signs 21%
Air conditioning and Windows Heat Pumps Boilers 1% 3% 0% Thermal Insulation 11%
Combined Heat and Power 0% Wall Panels 1%
Hard f loor-Cov erings 61%
54
Percentage num ber of contracts aw arded for 2nd set of priority sectors identified for greening - Year 2007
Mobile Phones 0% Street Lighting and Traf f ic Signs 12%
Boilers 0%
Air conditioning and Windows Heat Pumps 3% 9%
Thermal Insulation 7% Hard f loor-Cov erings 19% Wall Panels 2%
Road Construction and Traf f ic Signs 48%
Combined Heat and Power 0%
Percentage num ber of contracts aw arded for 2nd set of priority sectors identified for greening - Year 2008 Boilers 0%
Air conditioning and Heat Pumps Windows 14% 3%
Mobile Phones 0%
Thermal Insulation 5%
Hard f loor-Cov erings 29%
Street Lighting and Traf f ic Signs 15%
Wall Panels 3% Road Construction and Traf f ic Signs 31%
Combined Heat and Power 0%
10) As was previously stated, the procurement spend of the 20 priority sectors identified by the Commission for greening represent 44% (€ 80,065,419) and 22% (€ 39,104,791) of the total public procurement expenditure for the years 2007 and 2008 respectively. However, this analysis identified other potential product/service groups which in view of their relative impact on the total public procurement spend and hence consequent impact on the carbon footprint, merit further considerations for possible greening of procurement contracts. Tables 5 and 6 present a detailed breakdown of the ‘other potential‘ product/services groups both in terms of monetary value and number of contracts. 11) The ‘other potential’ product/service groups that have as yet not been included in the Commission’s list and therefore the development of green criteria have not yet been established by the EU include the following, Pharmaceuticals, Medical Supplies, Paper related products and Construction (in the case of the latter, some examples of other related construction activities that were not captured within the scope as defined within the GPP toolkit include, trenching works, excavation, construction of boundary walls and demolition). 12) The procurement spend of these ‘other potential’ product/service groups in relation to the total procurement spend amount to 30% (€55,666,464, [n=10,89]) in year 2007 and 54% (€96,696,663, [n=1,116]) in year 2008.
55
Percentage procurem ent spend including 'other potential' product/service groups - Year 2007 Paper Related Products Construction 1% 7% Pharmaceuticals 15%
Others 26%
Medical Supplies 7% Expenditure f or 2nd set 8%
Expenditure f or 1st set 36%
Percentage procurem ent spend including 'other potential' product/servcie groups - Year 2008
Paper Related Products 1% Construction 36%
Others 25%
Expenditure f or 1st set Pharmaceuticals 16% Expenditure f or 2nd 10% Medical Supplies set 7% 5%
56
Table 5: Breakdown of ‘other potential’ product groups in terms of monetary value Year 2007 Product Group Classification
Below €47,000
Medical Supplies
4,491,573
2,734,916
5,847,013
13,073,502
7%
5,272,151
1,901,018
5,366,047
12,539,216
7%
Pharmaceuticals
3,154,440
3,543,251
21,489,169
28,186,860
15%
3,652,189
2,812,431
11,155,89 6
17,620,516
10%
Construction
3,057,605
4,927,400
3,881,372
11,866,377
7%
2,384,875
3,744,833
59,119,12 1
65,248,829
36%
911,273
1,628,452
0
2,539,725
1%
703,368
584,734
0
1,288,102
1%
Equal of above €133,000
No. of Contracts
% of Total Public Procurement
Paper products
related
Equal of above €133,000
Value
% of Total Public Procurement
Year 2008
Equal or above €47,000
Below €47,000
Equal above €47,000
or
Table 6: Breakdown of ‘other potential’ product groups in terms of number of contracts Year 2007 Product Group Classification
Below €47,000
Equal or above €47,000
Equal of above €133,000
No. of Contracts
% of Total Public Procurement
Equal of above €133,000
Value
% of Total Public Procurement
Year 2008 Below €47,000
Equal above €47,000
or
Medical Supplies
421
37
10
468
17%
506
23
11
540
22%
Pharmaceuticals
280
43
53
376
14%
264
35
33
332
13%
Construction
157
53
6
216
8%
187
20
6
213
8%
Paper products
20
9
0
29
1%
24
7
0
31
1%
related
57
Discussion, Conclusions and Recommendations 1) With a view to meeting the 50% target as announced by the Commission, on the basis of this expenditure analysis, it transpires that the following key priority sectors are worth due consideration amongst other considerations for inclusion as key priority sectors for greening procurement contracts: First set priority sector Construction Office IT equipment Transport Food and Catering services Cleaning products and services Furniture 2) With respect to the product/service groups featuring within the second group of priority sectors the following are also worth due consideration amongst other considerations for inclusion as key priority sectors for greening procurement contracts: Second set priority sector Road Construction and Traffic Signs Hard floor coverings Thermal Insulation 3) When it comes to the procurement of Office IT equipment, it is worth noting that in year 2009 the Malta Information Technology Agency (MITA) awarded a leasing contract for the supply of personal computers, laptops and workstation support services in order to service government departments. The data captured in this report does not reflect this, as the period of analysis captures procurement activity for the years 2007 and 2008. a. However, it is worth noting that not all contracting authorities appear to benefit from this leasing service contract, for instance Local Councils and Government Entities are such examples. Further, MITA’s leasing contract does not cater for all Office IT equipments, for example, Printers, ink cartridges and toners are excluded. b. With a view to GPP, when it comes to purchasing Office IT equipment, the possibility to conclude framework agreements with several economic operators and to organize c. ‘mini competitions’ amongst the parties to the framework agreement when the actual d. purchasing needs of the contracting authority arise should not be overlooked. e. The use of framework agreements as discussed in point 3b can also be extended when purchasing other product/service groups such as cleaning products and services, Air Conditioning and Heat Pumps. 4. The implementation of GPP is ongoing. Future efforts aimed towards greening other product/service groups should focus on medical supplies, pharmaceuticals, paper related products and construction. 5. On the basis of this analysis it could be observed that the vast majority of contracts relating to the 20 priority product/service groups fall below the €133,000 threshold bracket. It could be argued that whilst on one hand this type of procurement activity makes it relatively ‘easy’ and ‘accessible’ for local economic operators in particular SME’s to compete for the award of local public tenders, on the other hand it does not provide one with sufficient exposure, experience and confidence to compete in the EU common market. Indeed, whilst acknowledging the various limitations in particular, Malta as a small Island State, this however, should not in any way be regarded as a deterrent. Our local economic operators can exploit the opportunities that public procurement within the EU common market offers. It appears that this area has not yet been tapped upon. Green Public Procurement further promotes such opportunities as the establishment of common GPP criteria further reduces administrative burdens. Moreover, the adoption of environmentally friendly measures across the various product/service groups bestows SME’s with a competitive edge. Green Public
58
Procurement could be regarded as a niche market. 6. Within the context of the opportunities being offered for SME’s to access public procurement contracts within the EU, the following UK example is worth mentioning35: “…….a framework agreement for suppliers of office furniture was set up that included large and small enterprises. Large furniture suppliers were able to achieve economies of scale for standard office furniture, and SMEs were able to provide flexibility in meeting requirements for special items, such as reception and conference room furniture and specialist seating. The latter items are typically specified to a higher standard and will vary from order to order. In this way the contracting authority achieved value for money in both standard and specialist items of furniture.” SEC (2008) 2193, p.9 7. Thus, when it comes to SMEs accessing public procurement contracts across the EU, the above arguments lead to the conclusion that in order to make up for this lack of exposure and hence be able to instil confidence, with the right level of Government support SME’s will be in a better position to exploit this market. Guidance and support to SME’s in the following areas are recommended: i. Adequate knowledge on tender procedures; ii. Dissemination of information on tender opportunities within the EU; iii. Coordinating and encouraging joint efforts amongst SME’s in the submission of joint tenders; iv. Adequate support in the preparation of tenders; v. Finding co-operation partners abroad.
Supplier analysis Breakdown of procurement activity by Supplier classification and GPP product/service group Objectives 1. This supplier analysis in conjunction with other studies/enquires seeks to provide a comprehensive understanding of the local scenario and baseline data that informs and guides Malta’s National Action Plan on Green Public Procurement. 2. It aims to establish a better understanding of the supplier base across the GPP product/service groups as identified by the Commission for years 2007 and 2008. Methodology 3. This analysis is based on the consolidated statistical data reports as submitted by all contracting authorities within the government sector for public contracts awarded during the Years 2007 and 2008. 4. Public procurement expenditure figures include those pursuant to Public Contracts Regulations, L.N. 177 (2005) and Public Procurement of entities operating in the W ater, Energy, Transport and Postal Services Sectors, L.N. 178 (2005). 5. The analysis was broken down under three main categories, i.e. for amounts: less than €47,000 greater than €47,000 but less than €133,000 greater than €133,000 6. All awarded contracts falling under the three main categories as noted in point 3 were then
35
Commission Staff Working Document, European Code of Best Practices Facilitating Access By SMEs to Public Procurement Contracts, SEC (2008) 2193.
59
classified according to the subject title of the contract. This classification took into account 36 the product/service scope definitions as defined in the EU GPP toolkit for the 10 established priority product/service GPP groups and the prospective priority product/service GPP groups. In the case of the latter only 7 priority product/service groups could be taken into consideration, in view of the fact that no contracts were awarded for Boilers, Mobile Phones and Combined Heat and Power during years 2007 and 2008. 7. Further to the categorisations as noted in points 5 and 6 above, all awardees were then classified according to the following supplier classification: Supplier Classification Importer Manufacturer
Service Provider
Foreign
Definition A company that imports finished products and distributes supplies as per tender specifications A company that imports the raw material, transforms this into finished goods and supplies and installs the finished goods as per tender specifications A company that provides a service in the form of provision of goods however with some specific task which is performed by the service provider A company which is not registered in Malta
8. On the basis of the above mentioned categorisations the range of different suppliers for each product/service group under the three different financial categorisations (i.e. below € 47,000, equal or above € 47,000 and above € 133,000) were identified. It is important to note that the same supplier may have been awarded more than one contract however, for the purpose of this analysis each supplier was counted once under each of the different financial categorisations. Therefore, if supplier XYZ was awarded various contracts under the below €47,000 threshold and under the above € 47,000 th ershold, for each instance supplier XYZ will be counted only once under each financial threshold that is, will be counted once under the below €47,000 threshold and once under the above € 47,000 threshold. Results 9. For years 2007 and 2008, 67% (n=303) and 57% (n=206) of the awarded contracts across the 17 product/service groups under investigation were service providers. Importers accounted for the second most common type of supplier, 25% (n=110) and 31% (n=111) for years 2007 and 2008 respectively. Manufacturers represented 7% (n=32) during 2007 and 11% (n=41) during 2008. Foreign suppliers accounted for 1% (n=5) during both years.
36
EUROPA- Environment- Green Public Procurement – Toolkit on Green Public Procurement http://ec.europa.eu/environment/gpp/consultation_en.htm
60
Percentage Breakdown of porcurement activity by supplier classification - Year 2007
Importers 25%
Foreign 1%
Manufacturers 7%
Service Providers 67%
Percentage Breakdown of porcurement activity by supplier classification - Year 2008
Importers 31%
Manufacturers 11%
Foreign 1%
Service Providers 57%
10. Tables 1 and 2 provide an in-depth analysis depicting breakdown of supplier analysis across the 17 product/service groups, further categorised under the three financial thresholds, i.e below € 47,000, equal or above € 47,000 and above 1 €33,000 for years 2007 and 2008. As previously highlighted each supplier was counted only once under each of the financial thresholds.
61
Table 1: Breakdown of Supplier Classification - Year 2007
Copying and Graphic Paper
Importers
Below € 47,0000
2
Manufacturer
Equal or above € 47,0000
Service Provider
Foreign
Totals
1
3
2
2
Above €133,000
1
TOTALS:
3
0
3
0
6
Cleaning products and Services
Importers
Manufacturer
Service Provider
Foreign
Totals
1
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
2
18
20
2
0
7 3 28
0
7 3 30
Office IT equipment
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
11
9
20
2 1 14
0
3 4 16
0
5 5 30
Construction
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
9
5
31
6
6
15
11
43 1 75
Transport
Importers
Manufacturer
Service Provider
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
12
22
34
9 4 25
0
14 2 38
0
23 6 63
Furniture
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
6
3
4
1
14
4 1 11
6
3 1 8
1
14 2 30
9
45 1 1
56 1 102
Foreign
Totals
2
62
Table 1 (continued)
Electricity
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
0
0
1
0
1 0 1
Food and Catering Services
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
11
3
6
20
15
3
2 1 9
0
6 1 27
Textiles
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS: Gardening Products and Services
0 1
4
3
3
2 2
0
3
0
2 0 5
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
14
14
4 0
4 0 18
0
0
18
Air Conditioning and Heat Pumps
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
7
7
0
4
Thermal Insulation
Importers
Manufacturer
Service Provider
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
1
1
0
3
10
1 0
1 0 11
Foreign
Totals
6
7
9
9 0 16
15
0
63
Table 1 (continued)
Wall Panels
Importers
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
1
Manufacturer
Service Provider
Foreign
Totals
1
2
2 1
0
3
0
2 0 4
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
4
3
12
19
2
15
4
5
27
0
17 0 36
Windows
Importers
Manufacturer
Service Provider
Foreign
Totals
Hard Floor Coverings
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS: Street Lighting and Traffic Signals Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS: Road Construction and Traffic Signals Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
0 2
1
0
2
1
0
3 0 3
Importers
Manufacturer
Service Provider
Foreign
Totals
4
7
1
12
5
4
1
9
0
11
2
10 0 22
Importers
Manufacturer
Service Provider
Foreign
Totals
1
2
14
17
29 1
2
43
0
29 0 46
Service Provider
Foreign
Totals
Table 2: Breakdown of Supplier Classification - Year 2008
Copying and Graphic Paper Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
Importers
Manufacturer
3
3
3
0 0 3
0
0
0
64
Cleaning products and Services
Importers
Manufacturer
Service Provider
2
17
19
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
0
2
17
0
0 0 19
Office IT equipment
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
9
5
14
1 10
0
3 10 18
0
4 10 28
Construction
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
16
7
41
18
7
12 4 57
1 1 2
15 5 84
Transport
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
8
14
22
4 12
0
7 1 22
0
11 1 34
Furniture
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
17
8
9
1
1 1 10
1 1 11
2
18
64
34
1 1
3 3 40
65
Table 2 (continued)
Electricity Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
Importers
Manufacturer
1
Service Provider
Foreign
Totals
1
1
1
1
0
2
0
2 0 3
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
22
7
8
37
1 1 24
2 9
1 1 10
0
4 2 43
Textiles
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
11
1
4
16
Food and Catering Services
Gardening Products and Services
2 1 14
1
4
0
2 1 19
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
14
14
2 0
2 0 16
0
0
16
Air Conditioning and Heat Pumps
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
6
6
0
5
Thermal Insulation
Importers
Manufacturer
Service Provider
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
1
1
0
3
9
2 0
2 0 11
Foreign
Totals
3
4
2
2 0 6
5
0
66
Table 2 (continued)
Wall Panels
Importers
Manufacturer
Service Provider
1
3
4
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
0
1
3
0
0 0 4
Hard Floor Coverings
Importers
Manufacturer
Service Provider
Foreign
Totals
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
1
7
9
1
Windows
Importers
Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS: Street Lighting and Traffic Signals Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS: Road Construction and Traffic Signals Below € 47,0000 Equal or above € 47,0000 Above €133,000 TOTALS:
17
7
1
7
16
1
8 0 25
Manufacturer
Service Provider
Foreign
Totals
2
2
0
2
0
0
0 0 2
Importers
Manufacturer
Service Provider
Foreign
Totals
5
1
9
3
1 3
0
6
1
1 0 10
Importers
Manufacturer
Service Provider
Foreign
Totals
2
7
9
7
7 0 16
0
2
14
0
67
Analysis and Discussion 1. From this examination it transpires that service providers are the main suppliers delivering public goods/services. On assessing the supplier classification mix it could be noted that service providers always featured (except in the case of Copying and Graphic Paper and W indows for Year 2008) across all the product/service groups.
2. Table 3 portrays the percentage breakdown of the level of involvement of Service Providers for each of the product/service groups during years 2007 and 2008. The mean values for each product/service group has also been provided. Table 4 provides a ranking order of the product/service groups mostly influenced by Service Providers. Table 3: Percentage Breakdown and mean values for level of involvement by Service Providers Product/service Group 2007 2008 Mean % % % Copying and Graphic Paper 50 0 25 Cleaning Products and Services 93 89.5 91 Office IT equipment 53 64 58.5 Construction 74 68 71 Transport 60 65 62.5 Furniture 27 27.5 27 Electricity 100 67 83.5 Food and Catering 33 23 28 Textiles 60 21 40.5 Gardening Products and Services 100 100 100 Air Conditioning and Heat Pumps 36 45 40.5 Thermal Insulation 94 83 88.5 Wall Panels 75 75 75 Hard floor coverings 75 64 69.5 Windows 33 0 16.5 Street lighting and traffic signals 50 60 55 Road Construction and Traffic Signs 94 87.5 90.75 Table 4: Ranking order of product/service group mostly influenced by Service Providers Product/service Group Percentage mean Ranking order score % Gardening Products and Services Cleaning Products and Services Road Construction and Traffic Signs Insulation Thermal Electricity Wall Panels Construction Hard floor coverings Transport Office IT equipment Street lighting and traffic signals Air Conditioning and Heat Pumps Textiles Food and Catering Furniture Copying and Graphic Paper Windows
100 91 90.75 88.5 83.5 75 71 69.5 62.5 58.5 55 40.5 40.5 28 27 25 16.5
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 12th 13th 14th 15th 16th
68
3. Given our local scenario, when it comes to suppliers meeting Government’s ambitious environmental criteria for products and services, one would assume that the greatest impact would need to be borne by manufacturers. Therefore, of particular interest is a better understanding of the level of involvement by manufacturers during the years 2007 and 2008. Indeed, although the results for the two years under examination cannot be used to extrapolate trends, nevertheless, one could derive a feel of how the supplier market that is furnishing government services/goods is structured.
4. Table 5 depicts the percentage breakdown of the level of involvement by manufacturers for each of the product/service groups, which on the basis of this investigation have to a certain extent shown its level of involvement. The mean value for the two years under investigation is also taken into consideration. This makes it possible to derive a ranking order. The product/service group mostly influenced by st the manufacturer’s involvement is ranked 1 (table 6 refers). Table 5: Percentage Breakdown and mean values for level of involvement by Manufacturers Product/service Group 2007 2008 % % Cleaning Products and Services Construction Furniture Food and Catering Textiles Hard floor coverings Windows Road Construction and Traffic Signs
0 10 30 11 0 13.9 66 4
10.5 13 25 21 5 28 100 12.5
Mean % 10.5 11.5 27.5 16 5 21 83 8
Table 6: Ranking order of product/service group mostly influenced by Manufacturers Product/service Group Percentage mean Ranking order score % Windows Furniture Hard floor coverings Food and Catering Construction Cleaning Products and Services Road Construction and Traffic Signs Textiles
83 27.5 21 16 11.5 10.5 8 5
1st 2nd 3rd 4th 5th 6th 7th 8th
5. The participation of importers in the delivery of government goods and services appears across all the product/service groups under this investigation except for Gardening Products and Services and Windows. 6. Table 7 provides the percentage breakdown of the level of involvement by importers for each of the product/service groups which on the basis of this investigation have to a certain extent shown its level of involvement. The mean value for the two years under investigation is also taken into consideration. This makes it possible to derive a ranking order. The product/service group mostly influenced by the importer’s involvement is ranked 1st (table 8 refers).
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Table 7: Percentage Breakdown and mean values for level of involvement by Importers Product/service Group 2007 2008 Mean % % % Copying and Graphic Paper Cleaning Products and Services Office IT equipment Construction Transport Furniture Electricity Food and Catering Textiles Gardening Products and Services Air Conditioning and Heat Pumps Thermal Insulation Wall Panels Hard floor coverings Windows Street lighting and traffic signals Road Construction and Traffic Signs
50 7 47 15 40 37 0 56 40 0 64 6 25 11 0 41 2
100 0 36 21 35 45 33 56 74 0 55 17 0 4 0 30 0
75 3.5 41.5 18 37.5 41 16.5 56 57 0 59.5 11.5 12.5 7.5 0 35.5 1
Table 8: Ranking order of product/service group mostly influenced by Importers Product/service Group Percentage mean Ranking order score % Copying and Graphic Paper Air Conditioning and Heat Pumps Textiles Food and Catering Office IT equipment Furniture Transport Street lighting and traffic signals Construction Electricity Wall Panels Thermal Insulation Hard floor coverings Cleaning Products and Services Road Construction and Traffic Signs
75 59.5 57 56 41.5 41 37.5 35.5 18 16.5 12.5 11.5 7.5 3.5 1
1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th
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Appendix 6 Prioritising Product/Service Groups and setting GPP Targets The selection of product/service groups for greening public procurement contracts and target setting was made on the basis of the information derived from the various investigations that were conducted and presented in this NAP. In addition, this selection process takes into consideration the following: 1.
Targets and actions must not involve an increase in the administrative burdens for companies or make participation for public procurement contracts harder for companies.
2.
An incremental approach will be adopted when greening public procurement contracts. Targets and actions will be introduced over a three year period.
3.
In effect, in order to ensure that the introduction of green criteria does not lead to market distortions the process of prioritising and setting GPP targets will take into consideration three main perspectives: i. ii. iii.
Potential Financial impact Potential Number of awarded contracts Potential Market Favourableness
4.
In the future, it is advisable that Environmental considerations in addition to the above mentioned perspectives are also taken into account when prioritising and setting GPP targets.
5.
The following sets out the methodology that has been adopted in order to be able to identify which product/service groups are to be prioritised for greening public procurement contracts and setting GPP targets.
Methodology 1.
In order to enable determination of the priority product/service groups and set the relevant targets this process has been applied to the first and second set of priority sectors that were identified by the Commission.
2. As noted above the process of prioritising and setting GPP targets takes into consideration three main perspectives: i. Potential Financial impact ii. Potential Number of awarded contracts iii. Potential Market favourableness 3.
Potential Financial Impact a)
The potential financial impact has been derived by taking into consideration the mean procurement percentage spend falling within the GPP scope of the priority sectors for the years 2007 and 2008. The amounts have been derived from the Expenditure Analysis.
b) A ranking score was then applied to the mean values, with the highest mean value awarded a ranking score of 1 and the lowest mean value awarded a ranking score of 10. 4.
Potential Number of awarded contracts a)
The potential number of awarded contracts has been derived by taking into consideration the mean percent of number of awarded contracts falling within the GPP scope of the priority sectors for the years 2007 and 2008. The amounts have been derived from the Expenditure Analysis.
b) A ranking score was then applied to the mean values, with the highest mean value awarded a ranking score of 1 and the lowest mean value awarded a ranking score of 10. 6.
Potential Market Favourableness a)
The potential market favourableness takes into consideration three sub-categorisations, namely
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• • •
the potential impact of the service provider on the service/product group and henceforth on the supplier market; the potential impact of the manufacturer on the service/product group and henceforth on the supplier market the potential impact of the importer on the service/product group and henceforth on the supplier market.
b) On the basis of the ranking scores derived from the Market analysis for the product/service groups falling within each set of priority sectors and sub-categorised according to the supplier classification, in particular to service providers and importers a score of 1-10 was allotted for each product/service group. The score of 1 was assigned to the product/service group that was identified as bearing relatively least influence by the service provider or importer and 10 assigned to the product/service group that was identified as bearing relatively most influence. A score of ‘0’ was assigned when no ranks were allotted denoting that the supplier classification under question bore no influence on that particular product/service group. c)
When it came to assigning the scores of the manufacturer, in view of the potential added burdens that may need to be borne by manufacturers when introducing green criteria, a negative scoring system was adopted, starting off by assigning a score of -1 to the product/service group that was identified and ranked as bearing relative least influence by the manufacturer, a score of -2 to the product/service ranked as the second least influence and so on. A score of ‘0’ was assigned when no ranks were allotted denoting that the manufacturer bore no influence on that particular product/service group.
d) The total scores derived from the above mentioned sub-categorisations provided the total value for Market Favourableness with the lowest score being assigned the lowest rank. Tables 1 and 2 portray all values for the first set and the second set priority sectors respectively. 7.
In the light of the various investigations as presented in this NAP and following the adoption of the above mentioned methodology, tables 3 and 4 capture which product/service groups are to be given priority and sets out targets over a three year period.
8.
The greening of procurement contracts in connection with Transport needs to take into account the recently adopted Directive on the promotion of clean and energy efficient road transport vehicles (Directive 2009/33/EC). Directive 2009/33/EC needs to be transposed by Member States by 4 December 2010.
9.
It is highly recommended that close scrutiny be maintained during the implementation period. Following the experience gained by the end of each year one would be in a better position to review the targets set for the forthcoming year and if necessary revise accordingly.
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Table 1: Market favourableness (first set priority sector) Service Providers’ Importers’ Potential Impact on Potential Impact Market on Market
Manufacturers' Potential Impact on Market
TOTAL SCORE
Market Favourableness ranking scores
Score 1-10 with 1 being relatively least influenced and 10 relatively most influenced and 0 = no influence
Office IT equipment Copying and Graphic Paper Transport Electricity Gardening Products and Services Textiles Cleaning products and services Construction Food and Catering services Furniture
5
7
0
12
10
1 6 n/a
10 5 n/a
0 0 n/a
11 11 n/a
9 8 n/a
10 4
0 9
0 -6
10 7
6 5
9 7
2 4
-7 -8
4 3
4 3
3 2
8 6
-9 -10
2 -2
2 1
Manufacturers' Potential Impact on Market
TOTAL SCORE
Market Favourableness ranking scores
Table 2: Market favourableness (second set priority sector) Service Providers’ Importers’ Potential Impact on Potential Impact Market on Market
Score 1-10 with 1 being relatively least influenced and 10 relatively most influenced and 0 = no influence
Mobile Phones Combined Heat and Power Boilers Air Conditioning and Heat Pumps Thermal Insulation Wall Panels Hardfloor coverings Windows Street lighting and traffic signals Road construction and traffic signs
0
0
0
0
0
0 0
0 0
0 0
0 0
0 0
4 9 8
10 7 8
0 0 0
14 16 16
8 10 9
6 3
6 0
-2 -3
10 0
5 0
5
9
0
9
7
10
5
-1
5
6
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Table 3: Prioritising Product/Service Groups (first set priority sector) TARGETS
Copying and Graphic Paper Electricity Gardening Products and services Cleaning products and services
Potential Financial Impact
Potential number of Awarded Contracts
Market favourableness
TOTAL SCORE
RANKING SCORE
YEAR 1
YEAR 2
YEAR 3
9 n/a
9 n/a
9 n/a
27 n/a
1 n/a
100%
100%
100%
7
8
6
21
2
100%
100%
100%
8
6
4
18
3
80%
90%
100%
Textiles Office IT equipment
6
7
5
18
3
100%
100%
100%
2
5
10
17
4
100%
100%
100%
Transport
3 5
3 4
8 1
14 10
5 6
10% 10%
20% 20%
30% 30%
4 1
2 1
2 3
8 5
7 8
10% -
20% -
30% -
Furniture Food and Catering services Construction
Table 4: Prioritising Product/Service Groups (second set priority sector) TARGETS Potential Financial Impact
Potential number of Awarded Contracts
Market favourableness
TOTAL SCORE
RANKING SCORE
YEAR 1
YEAR 2
YEAR 3
Mobile Phones
0
0
0
0
0
0
0
0
Combined Heat and Power
0
0
0
0
0
0
0
0
3 7
5 7
10 9
18 23
2 1
80% 80%
90% 90%
100% 100%
Windows
2 6
2 6
5 0
9 12
6 5
10% 10%
20% 20%
30% 30%
Street lighting and traffic signs
5
3
7
15
4
10%
20%
30%
Road construction and traffic signs
1
1
6
8
7
10%
20%
30%
Thermal insulation Wall panels Hardfloor coverings
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Revision in the Prioritising Product/Service Groups 1.
The above prioritisation exercise was conducted in early 2010. Following stakeholder consultation the analysis has been updated in order to reflect the changes to the Common EU GPP product/service groups and to integrate environmental considerations in the prioritisation exercise.
2.
The revision has led to the removal of the product/service groups for ‘boilers’ and ‘air conditioning and heating pumps’ from the priority list. When these product/service groups were included in 2010, consultation for the second priority list was still being carried out by the European Commission. Following consultation, both groups were withdrawn from the second GPP list. Thus, no common criteria are available for these products and services to guide this action plan.
3.
The revision was carried out also with the intention of including environmental considerations in the prioritisation of the product and service groups. This criterion was necessary to give additional weight to the target of GPP product/service groups based on their environmental impact on production and consumption in the Maltese context.
4.
The environmental considerations of the 18 GPP product/service groups were carried out with respect to their impact on land, air, water, biodiversity & energy and resource use. This multi-faceted assessment is shown in Table 5 grading environmental impact as Low, Medium or High.
Table 5: Environmental Impact (First & second set priority sector) Impact land
Copying and graphic paper Cleaning products & services Office IT equipment Construction Transport Furniture Electricity Food and Catering services Textiles Gardening products and services Windows, Glazed Doors and Skylights Thermal insulation Hard floor-coverings Wall Panels Combined Heat & Power (CHP) Road construction and traffic signs Street lighting and traffic signals Mobile phones
5.
on
Impact on air
Impact water
on
Impact on biodiversity
Energy resource intensity
& use
Overall environmental impact
L
L
M
H
M
M
L H H H L M
L L H H L H
H L L L L L
M L H L M L
M H H H M H
M M H H L/M M
M M
L L
H M
H M
M M
M/H M
M
L
H
H
L
M
L L L L
L L L L
L L L L
L L L L
H H H H
M/L M/L M/L M/L
M
H
L
L
H
M
H
H
M
H
H
H
M L
M L
L L
L L
H L
M L
In addition to the environmental assessment, additional stakeholder consultation meetings were held.
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6.
Following these revisions, an updated table of revised targets has been produced as shown in Table 6. In addition this table collects both priority sets previously listed in the 2010 draft of the NAP into a single list.
Table 6: Revised GPP Targets Product / service group
YEAR 1
TARGETS YEAR 2
YEAR 3
Copying and graphic paper
100%
100%
100%
Gardening products and services
100%
100%
100%
Cleaning products and services
80%
90%
100%
Textiles
100%
100%
100%
Office IT equipment
100%
100%
100%
Transport
10%
20%
30%
Furniture
10%
20%
30%
Food and catering services
10%
20%
30%
Electricity
10%
20%
30%
Construction
10%
20%
30%
Mobile Phones
10%
20%
30%
Combined Heat and Power
10%
20%
30%
Thermal insulation
80%
90%
100%
Wall panels
80%
90%
100%
Hard floor coverings
10%
20%
30%
Windows, glazed doors and skylights
10%
20%
30%
Street lighting and traffic signals
10%
20%
30%
Road construction and traffic signs
10%
20%
30%
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